takeover

A takeover, or merger and acquisition (M&A), occurs when one firm takes control of another firm, typically through the purchase of a majority of the target firm’s shares. Takeovers can be friendly, in which the target firm’s management and board of directors approve of the transaction, or hostile, in which the target firm’s management and board of directors oppose the transaction.

There are a number of reasons why a firm might want to acquire another firm. Some of the most common reasons include:

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A hostile takeover, also known as a hostile acquisition, occurs when an acquiring company attempts to take control of a target company against the wishes of the target’s management. Hostile takeovers can be complex and challenging to defend against, but there are several strategies that companies can employ to avoid or deter them.

One of the most important steps that companies can take to avoid a hostile takeover is to maintain a strong financial position. Companies with strong cash flow and low debt levels are less likely to be attractive targets for hostile acquirers. Additionally, companies with good corporate governance practices and a strong track record of performance are also less likely to be targeted.

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