TARGET COMPANY Meaning and
Definition
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A target company refers to a firm that is being pursued for acquisition or merger by another company, known as the acquiring company. The term is commonly used in the context of corporate finance, investment banking, and mergers and acquisitions (M&A).
A target company typically possesses attractive attributes, such as a strong market position, unique products or services, valuable intellectual property, a robust customer base, or solid financial performance, which makes it appealing to potential acquirers. The acquiring company seeks to gain control over the target company's assets, operations, and strategic advantages through the M&A process.
The acquisition of a target company can be achieved through various means, including negotiating a purchase agreement, acquiring a controlling interest in its shares or assets, or engaging in a hostile takeover. In this process, the acquiring company assesses the value and viability of the target company, conducts due diligence to evaluate its financial and operational position, and negotiates a deal that is acceptable to both parties.
Target companies are often identified based on strategic fit, industry attractiveness, potential synergies, or growth opportunities. Once acquired, the target company may be integrated into the acquiring company's operations, combined with other entities, or maintained as a separate entity, depending on the strategic objectives and business plans of the acquiring party.
Overall, a target company represents an attractive business entity that is actively sought after for acquisition or merger by another company, aiming to enhance its market position, expand its operations, or achieve strategic objectives through the consolidation of resources and capabilities.
Common Misspellings for TARGET COMPANY
- rarget company
- farget company
- garget company
- yarget company
- 6arget company
- 5arget company
- tzrget company
- tsrget company
- twrget company
- tqrget company
- taeget company
- tadget company
- tafget company
- tatget company
- ta5get company
- ta4get company
- tarfet company
- tarvet company
- tarbet company
Etymology of TARGET COMPANY
The etymology of the term "target company" can be traced back to the individual meanings of each word.
1. Target: The word "target" comes from the Old French word "targette", meaning a small shield used in archery practice. It further derives from the Old French word "targe", which means a shield or buckler. The word originated from the Latin term "targa", referring to a light shield.
2. Company: The word "company" has its roots in the Latin word "companio" or "companionem", which means a companion, associate, or partner. In Middle English, it evolved to "compaignie" and eventually became "company" in modern English.
Similar spelling words for TARGET COMPANY
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