DEFINITION of 'Acquiree'

The company that is being acquired or purchased in a merger or acquisition. The acquiree is also known as the "target firm".

Usually the acquiree will see a short-term movement in the price of its shares to resemble the price per share that was paid by the acquirer. This can be a positive or negative amount.


For example if ABC firm is trading at $12 per share and has 100,000 shares outstanding when it's acquired for 2 million by firm DEF, then ABC's share price should jump to approximately $20 per share (2,000,000/100,000 = 20).

  1. Acquisition

    A corporate action in which a company buys most, if not all, ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for ...
  3. No-Shop Clause

    A clause in an agreement between a seller and a potential buyer ...
  4. Acquisition Financing

    The capital that is obtained for the purpose of buying another ...
  5. Target Firm

    A company which is the subject of a merger or acquisition attempt. ...
  6. Merger

    The combining of two or more companies, generally by offering ...
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  1. What happens to the stock prices of two companies involved in an acquisition?

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  2. How long does it take to execute an M&A deal?

    Even the simplest merger and acquisition (M&A) deals are challenging. It takes a lot for two previously independent enterprises ... Read Full Answer >>
  3. What are some common accretive transactions?

    The term "accretive" is most often used in reference to mergers and acquisitions (M&A). It refers to a transaction that ... Read Full Answer >>
  4. What are some ways to make a distribution channel more efficient?

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  5. How is a tender offer used by an individual, group or company seeking to purchase ...

    A tender offer is made directly to shareholders in a publicly traded company to gain enough shares to force a sale of the ... Read Full Answer >>
  6. How does a company record profits using the equity method?

    A company that invests in another company and has majority control of it would record profits using the equity method. This ... Read Full Answer >>

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