A strategic buyer is a company that uses acquisitions as a part of its growth strategy. In contrast, a financial buyer is a company that purchases another company primarily for financial gain. Strategic buyers are usually larger companies that are looking to acquire smaller companies in order to grow their market share or enter into … Read more
Inorganic growth is growth that occurs through means other than organic growth. Organic growth is internal growth that a company achieves through its own efforts, such as expanding its product line or opening new locations. Inorganic growth, on the other hand, is growth that a company achieves through external means, such as acquiring another company … Read more
A stalking-horse bid is an initial bid on a company or other asset, made by an investor who intends to acquire the target. The stalking-horse bid is typically lower than the investor’s eventual offer, and is used to gauge the interest of other potential buyers. If there is sufficient interest, the investor may raise their … Read more
Repackaging in private equity is the process of combining multiple investments into a new, single investment. This is often done to make the investment more attractive to potential buyers, or to reduce the risk of the investment. Private equity firms will often repackage investments that have been made in different companies, or in different parts … Read more
The Celler-Kefauver Act is a United States federal law that was enacted in 1950 in an attempt to regulate monopolies and prevent anticompetitive practices in the marketplace. The act was sponsored by senators Estes Kefauver and Ernest Hollings, and was signed into law by President Harry S. Truman. The Celler-Kefauver Act was an amendment to … Read more
An institutional buyout (IBO) is a type of corporate takeover in which a company is acquired by a group of investors, typically large financial institutions, rather than by another company. The investors may be private equity firms, venture capitalists, or hedge funds. IBOs are typically done as leveraged buyouts (LBOs), in which the investors use … Read more
