Corporate Growth Flashcards

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1
Q

tr corporate alliances + synonym

A

poslovna zavezništva; mergers & acquisitions

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2
Q

how can companies grow?

A

internally (increasing its sales) or externally (corporate alliances)

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3
Q

tr merger

A

združitev

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4
Q

def acquisition

A

a purchase of another company (through the purchase of their shares) - no matter of how large the stake is

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5
Q

def+tr joint ventures

A

two companies create something new together.

joint ownership (mešano podjetje) // joint project by contract (skupna vlaganja)

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6
Q

def merger

A

two companies agree to join together to form a new one
in theory, it should be a 50/50 share swap, but in practice that varies
no sale agreement involved

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7
Q

why do companies keep M&A-ing? (8) (benefits of M&As)

A
  • to increase their market share (price-setting)
  • to gain new insider knowledge
  • opportunity to access new markets
  • to eliminate competition
  • to make more profit
  • synergies
  • staff overhaul (reorganisation, keeping only the best ones)
  • cost-cutting (bulk buying, economies of scale or scope, sharing R&D costs)
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8
Q

def stake

A

synonym for share

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9
Q

def takeover

A

a company acquiring a majority stake in another company (50%)
(= bid = offer)

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10
Q

def friendly takeover

A

the company that is taken over is compliant, and it is negotiated
often regarded as mergers

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11
Q

def hostile takeover

A

the company that is taken over is not compliant
happen by launching a raid (attack) - usually regarded as an acquisition
done by buying the shares on the stock exchange

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12
Q

acquiring company syonym

A

acquirer, bidder

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13
Q

target company synonym

A

acquiree, (bid) target

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14
Q

which are the main steps the acquirer takes?

A
  1. define strategic goals
  2. decide on a target
  3. valuate the target
  4. ensuring funds and funders
  5. establish confidence in data: due diligence (skrbni pregled)
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15
Q

tr economies of scale

A

ekonomije obsega

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16
Q

where the most M&A happen?

A

automotive and pharma industries

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17
Q

what are the main problems before an M&A happens?

A
  1. frictions in management
  2. maintaining secrecy (of the M&A)
    - ↑ share price
    - ↓ employees
    - different cultures
  3. due diligence
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18
Q

what is an antonym of a merger?

A

de-merger

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19
Q

what are the main problems after an M&A happens?

A
  • implementation
  • layoffs, redunancies
  • reorganising the workplace
  • establishing uniform corporate culture
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20
Q

def horizontal and vertical integration

A
vertical = a company buying out its suppliers and/or customers
horizontal = combining of two companies that produce similar goods/services
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21
Q

def leveraged buyout (LBO) +tr

A

buyout using borrowed funds

odkup z zadolžitvijo

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22
Q

def domestic acquisition

A

an Acq in the same country the acquirerer is from

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23
Q

def cross-border acquisition

A

an Acq in another country than the acquirerer is from

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24
Q

def management buyout (MBO) +tr

A

if the buyer is the company’s own management

managerski prevzem

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25
Q

why are conglomerates inefficient?

A

because they lose focus on their core business

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26
Q

def+ synonym competition authorities

A

antitrust regulators

montitoring and controlling merging and buying activities to prevent anti-competitive concentrators on the market

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27
Q

def competition laws + synonym

A

antitrust laws

regulating anti-competitive practices and agreements

28
Q

def (symbolic meaning)+tr prey

A

target company, plen

29
Q

def (symbolic meaning) Black Knight, predator, raider

A

an acquiring company that makes a hostile takeover bid

30
Q

def (symbolic meaning) Sleeping Beauty

A

a target company with great potential

31
Q

def (symbolic meaning) to take a poison pill

A

to discourage hostile takeovers by making stock less attractive and offering it to shareholders at a discounted price

32
Q

def (symbolic meaning) to announce a marriage plan

A

to announce a merger

33
Q

def (symbolic meaning) to tie the knot

A

to merge

34
Q

def (symbolic meaning) crown jewels

A

company’s most valuable assets

35
Q

def (symbolic meaning) dawn raid

A

buying company’s shares on the stock exchange

36
Q

majority share synonym

A

controlling share

37
Q

target snynoym

A

acquiree

38
Q

def+tr economies of scope

A

efficiencies that arise from producing a number of different products
ekonomije dejavnosti

39
Q

when does an MBO happen? (in economies with tradition)

A

when the company is on the verge of collapse, but the mng still believes in it (so they borrow money individually and buy the company to save it)

40
Q

why does an MBO have a negative connotation in ex-socialistic countries?

A

mng would buy the company from the government, pledging the company itself as collateral. when they became the owners, they would lay off the employees and make a lot of money themselves

41
Q

def asset stripping

A

buying a company and selling them by parts (done by corporate raiders)

42
Q

der corporate raiders

A

people outside the company that buy companies just to sell them again (think the guy from Pretty Woman)

43
Q

tr internal and external growth

A

notranja in zunanja rast

44
Q

tr target firm

A

ciljno podjetje, tarča

45
Q

tr acquirer / bidder

A

prevzemno podjetje

46
Q

tr raider

A

sovražni prevzemnik

47
Q

tr hostile and friendly takeover

A

sovražni in prijazni prevzem

48
Q

tr takeover bid

A

ponudba za prevzem

49
Q

tr market capitalisation + def

A

the market value of all company stocks

tržna vrednost podjetja

50
Q

tr antitrust regulatino

A

protimonopolna zakonodaja

51
Q

the acquiring company launched a ____ for the company

A

bid

52
Q

share 2 synonyms

A

interest, stake

53
Q

offer 2 synonyms

A

bid, proposal

54
Q

acquisition 2 synonyms

A

takeover, buyout

55
Q

joint venture 2 synonyms

A

strategic alliance, partnership

56
Q

controlling interest 2 synonyms

A

majority stake, controlling stake

57
Q

to buy 2 synonyms

A

to purchase, to acquire

58
Q

acquirer 2 synonyms

A

bidder, offerer

59
Q

target 2 synonyms

A

target firm, acquiree

60
Q

to take over 2 synonyms

A

to buy out, to acquire

61
Q

to merge with 2 synonyms

A

to combine with, to join with

62
Q

tr to clinch a deal + synonym

A

skleniti posel

to close a deal

63
Q

meaning JV and DD

A

joint venture

due diligence

64
Q

tr povečana učinkovitost

A

increased efficiency

65
Q

tr valuation

A

vrednotenje podjetja

66
Q

tr product diversification

A

proizvodna diversifikacija