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Definition of '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 acquirer. If management and shareholders are in favor of the transaction, then a friendly and orderly transaction can take place. When there is opposition to the transaction, the target firm may attempt a variety of hostile actions hoping to thwart the takeover attempt.
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Investopedia explains 'Target Firm'
Target firms are often acquired at a price in excess of their fair market value. This is rational when the acquiring firm perceives an additional strategic value to the acquisition, such as greater economies of scale. These economies do not always materialize however, since there can be additional hidden costs associated with the integration of two firms.
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Size matters when it comes to corporate purchases.
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Find out which companies collapsed after merging.
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Use these seven steps to discover a takeover before the rest of the market catches on.
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These tips can lead you to little companies with big prospects.
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When major corporate transactions have a big impact on the currency markets, you can benefit.
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In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
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From bloodletting to ye olde black knights, things on Wall Street are getting downright medieval!
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