Corporate Growth Flashcards
tr corporate alliances + synonym
poslovna zavezništva; mergers & acquisitions
how can companies grow?
internally (increasing its sales) or externally (corporate alliances)
tr merger
združitev
def acquisition
a purchase of another company (through the purchase of their shares) - no matter of how large the stake is
def+tr joint ventures
two companies create something new together.
joint ownership (mešano podjetje) // joint project by contract (skupna vlaganja)
def merger
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
why do companies keep M&A-ing? (8) (benefits of M&As)
- 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)
def stake
synonym for share
def takeover
a company acquiring a majority stake in another company (50%)
(= bid = offer)
def friendly takeover
the company that is taken over is compliant, and it is negotiated
often regarded as mergers
def hostile takeover
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
acquiring company syonym
acquirer, bidder
target company synonym
acquiree, (bid) target
which are the main steps the acquirer takes?
- define strategic goals
- decide on a target
- valuate the target
- ensuring funds and funders
- establish confidence in data: due diligence (skrbni pregled)
tr economies of scale
ekonomije obsega
where the most M&A happen?
automotive and pharma industries
what are the main problems before an M&A happens?
- frictions in management
- maintaining secrecy (of the M&A)
- ↑ share price
- ↓ employees
- different cultures - due diligence
what is an antonym of a merger?
de-merger
what are the main problems after an M&A happens?
- implementation
- layoffs, redunancies
- reorganising the workplace
- establishing uniform corporate culture
def horizontal and vertical integration
vertical = a company buying out its suppliers and/or customers horizontal = combining of two companies that produce similar goods/services
def leveraged buyout (LBO) +tr
buyout using borrowed funds
odkup z zadolžitvijo
def domestic acquisition
an Acq in the same country the acquirerer is from
def cross-border acquisition
an Acq in another country than the acquirerer is from
def management buyout (MBO) +tr
if the buyer is the company’s own management
managerski prevzem
why are conglomerates inefficient?
because they lose focus on their core business
def+ synonym competition authorities
antitrust regulators
montitoring and controlling merging and buying activities to prevent anti-competitive concentrators on the market
def competition laws + synonym
antitrust laws
regulating anti-competitive practices and agreements
def (symbolic meaning)+tr prey
target company, plen
def (symbolic meaning) Black Knight, predator, raider
an acquiring company that makes a hostile takeover bid
def (symbolic meaning) Sleeping Beauty
a target company with great potential
def (symbolic meaning) to take a poison pill
to discourage hostile takeovers by making stock less attractive and offering it to shareholders at a discounted price
def (symbolic meaning) to announce a marriage plan
to announce a merger
def (symbolic meaning) to tie the knot
to merge
def (symbolic meaning) crown jewels
company’s most valuable assets
def (symbolic meaning) dawn raid
buying company’s shares on the stock exchange
majority share synonym
controlling share
target snynoym
acquiree
def+tr economies of scope
efficiencies that arise from producing a number of different products
ekonomije dejavnosti
when does an MBO happen? (in economies with tradition)
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)
why does an MBO have a negative connotation in ex-socialistic countries?
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
def asset stripping
buying a company and selling them by parts (done by corporate raiders)
der corporate raiders
people outside the company that buy companies just to sell them again (think the guy from Pretty Woman)
tr internal and external growth
notranja in zunanja rast
tr target firm
ciljno podjetje, tarča
tr acquirer / bidder
prevzemno podjetje
tr raider
sovražni prevzemnik
tr hostile and friendly takeover
sovražni in prijazni prevzem
tr takeover bid
ponudba za prevzem
tr market capitalisation + def
the market value of all company stocks
tržna vrednost podjetja
tr antitrust regulatino
protimonopolna zakonodaja
the acquiring company launched a ____ for the company
bid
share 2 synonyms
interest, stake
offer 2 synonyms
bid, proposal
acquisition 2 synonyms
takeover, buyout
joint venture 2 synonyms
strategic alliance, partnership
controlling interest 2 synonyms
majority stake, controlling stake
to buy 2 synonyms
to purchase, to acquire
acquirer 2 synonyms
bidder, offerer
target 2 synonyms
target firm, acquiree
to take over 2 synonyms
to buy out, to acquire
to merge with 2 synonyms
to combine with, to join with
tr to clinch a deal + synonym
skleniti posel
to close a deal
meaning JV and DD
joint venture
due diligence
tr povečana učinkovitost
increased efficiency
tr valuation
vrednotenje podjetja
tr product diversification
proizvodna diversifikacija
