Takeover

A takeover is a process in which one company acquires another company, either by buying its shares or assets. The company that is taken over is known as the target company, while the company that does the taking over is known as the acquirer. Takeovers can be friendly or hostile, depending on the relationship between the two companies. In a friendly takeover, the target company agrees to the takeover and the two companies work together to make the transition as smooth as possible. In a hostile takeover, the target company does not agree to the takeover and the acquirer must use other tactics to gain control of the target company.

History of Takeovers

The history of takeovers dates back to the late 19th century, when companies began to acquire other companies in order to expand their operations. In the early 20th century, the concept of the hostile takeover began to emerge, as companies began to use tactics such as proxy fights and tender offers to gain control of other companies. In the 1980s, the concept of the leveraged buyout became popular, as companies used debt financing to acquire other companies. In the 1990s, the concept of the merger of equals became popular, as companies sought to combine their operations in order to become more competitive.

Comparison of Takeovers

Summary

A takeover is a process in which one company acquires another company, either by buying its shares or assets. Takeovers can be friendly or hostile, depending on the relationship between the two companies. The history of takeovers dates back to the late 19th century, when companies began to acquire other companies in order to expand their operations. For more information on takeovers, visit websites such as Investopedia, The Balance, and Mergermarket.

See Also

• Merger
• Acquisition
• Leveraged Buyout
• Proxy Fight
• Tender Offer
• Divestiture
• Spin-off
• Consolidation
• Joint Venture
• Synergy

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