Mergers and Acquisitions Basics

Glossary

Accounting considerations	The potential impact of financial reporting requirements on the earnings volatility of business combinations due to the need periodically to revalue acquired assets to their fair market value.
Acquirer; acquiring company	A firm that attempts to acquire a controlling interest in another company.
Acquisition vehicle	The legal structure used to acquire another company.
Advance ruling	An IRS ruling sought by acquirers and targets planning to enter into a tax-free transaction. A favorable ruling is often a condition of closing.
Advance notice provisions	Require shareholder proposals and board nominations be announced well in advance of the actual vote.
Affirmative covenant	A portion of a loan agreement that specifies the actions ...