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Sandbag
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Definition of 'Sandbag'
A stalling tactic used by management to deter a company that is showing interest in taking them over.
Investopedia explains 'Sandbag'
The company stalls in hopes that a more favorable company will take them over.
Related Definitions
Lobster Trap
A strategy used by a target firm to prevent a hostile takeover. In a lobster trap, the company passes a provision preventing anyone with more than 10% ownership from converting ...
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Takeover
A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
Read More »
White Knight
A company that makes a friendly takeover offer to a target company that is being faced with a hostile takeover from a separate party.
Read More »
Sleeping Beauty
A company that is considered prime for takeover, but has not yet been approached by an acquiring company. A company may be considered a sleeping beauty for a variety of reasons, ...
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Target Firm
A company which is the subject of a merger or acquisition attempt. A takeover attempt can take on many different flavors, depending on the attitude of the target firm toward the ...
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Black Knight
A company that makes a hostile takeover offer for a target company. In mergers and acquisitions, a black knight attempts a takeover that the target company deems unwelcomed. When a ...
Read More »
Shark Repellent
Slang term for any one of a number of measures taken by a company to fend off an unwanted or hostile takeover attempt. In many cases, a company will make special amendments to its ...
Read More »
Macaroni Defense
An approach taken by a company that does not want to be taken over. The company issues a large number of bonds with the condition they must be redeemed at a high price if the company is ...
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Mergers And Acquisitions - M&A
A general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by ...
Read More »
Inorganic Growth
A growth in the operations of a business that arises from mergers or takeovers, rather than an increase in the companies own business activity. Firms that choose to grow inorganically ...
Read More »
Nearby Definitions
Sampling Distribution
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Sampling Error
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Samurai Bond
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Samurai Market
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Sandbag
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Sandwich Generation
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Sandwich Lease
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Sanford J. Grossman
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Sanku (Three Gaps) Pattern
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Articles Of Interest
Mergers And Acquisitions: Understanding Takeovers
In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
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