DEFINITION of 'Baptism of Fire'
A difficult situation that a company or individual experiences that will result in either success or failure. Examples include Initial Public Offerings (IPOs), a new CEO hired to manage a struggling company, and hostile takeover attempts.
BREAKING DOWN 'Baptism of Fire'
A baptism of fire will either weaken or strengthen the entity involved.
The phrase is an allusion to the Bible in both Acts 2:3-4 and Matthew 3:11.