BROWSE

Target Firm

What is a 'Target Firm'

A target firm is a company which is the subject of a merger or acquisition attempt. A takeover attempt can take on many different flavors, depending on the attitude of the target firm toward the acquirer. If management and shareholders are in favor of the transaction, then a friendly and orderly transaction can take place. When there is opposition to the transaction, the target firm may attempt a variety of hostile actions hoping to thwart the takeover attempt.

Explaining 'Target Firm'

Target firms are often acquired at a price in excess of their fair market value. This is rational when the acquiring firm perceives an additional strategic value to the acquisition, such as greater economies of scale. These economies do not always materialize however, since there can be additional hidden costs associated with the integration of two firms.


Further Reading


Whistle-blowing: Target firm characteristics and economic consequences
meridian.allenpress.com [PDF]
… Despite the recent prominence of whistle-blowing events, we are not aware of prior work in the accounting and finance literatures that attempts to resolve the conflict between these … Whistle-Blowing: Target Firm Characteristics and Economic Consequences 1241 …

Target-firm information asymmetry and acquirer returnsTarget-firm information asymmetry and acquirer returns
academic.oup.com [PDF]
… Despite the recent prominence of whistle-blowing events, we are not aware of prior work in the accounting and finance literatures that attempts to resolve the conflict between these … Whistle-Blowing: Target Firm Characteristics and Economic Consequences 1241 …

Foreign takeover activity in the US and wealth effects for target firm shareholdersForeign takeover activity in the US and wealth effects for target firm shareholders
www.jstor.org [PDF]
… Despite the recent prominence of whistle-blowing events, we are not aware of prior work in the accounting and finance literatures that attempts to resolve the conflict between these … Whistle-Blowing: Target Firm Characteristics and Economic Consequences 1241 …

Antitakeover measures, golden parachutes, and target firm shareholder welfareAntitakeover measures, golden parachutes, and target firm shareholder welfare
www.jstor.org [PDF]
… Despite the recent prominence of whistle-blowing events, we are not aware of prior work in the accounting and finance literatures that attempts to resolve the conflict between these … Whistle-Blowing: Target Firm Characteristics and Economic Consequences 1241 …

Top managerial prestige, power and tender offer response: A study of elite social networks and target firm cooperation during takeoversTop managerial prestige, power and tender offer response: A study of elite social networks and target firm cooperation during takeovers
pubsonline.informs.org [PDF]
… Despite the recent prominence of whistle-blowing events, we are not aware of prior work in the accounting and finance literatures that attempts to resolve the conflict between these … Whistle-Blowing: Target Firm Characteristics and Economic Consequences 1241 …

Factors affecting the magnitude of premiums paid to target‐firm shareholders in corporate acquisitionsFactors affecting the magnitude of premiums paid to target‐firm shareholders in corporate acquisitions
onlinelibrary.wiley.com [PDF]
… Despite the recent prominence of whistle-blowing events, we are not aware of prior work in the accounting and finance literatures that attempts to resolve the conflict between these … Whistle-Blowing: Target Firm Characteristics and Economic Consequences 1241 …

Takeover resistance, information leakage, and target firm valueTakeover resistance, information leakage, and target firm value
journals.sagepub.com [PDF]
… Despite the recent prominence of whistle-blowing events, we are not aware of prior work in the accounting and finance literatures that attempts to resolve the conflict between these … Whistle-Blowing: Target Firm Characteristics and Economic Consequences 1241 …

Target firm abnormal returns and trading volume around the initiation of change in control transactionsTarget firm abnormal returns and trading volume around the initiation of change in control transactions
www.jstor.org [PDF]
… Despite the recent prominence of whistle-blowing events, we are not aware of prior work in the accounting and finance literatures that attempts to resolve the conflict between these … Whistle-Blowing: Target Firm Characteristics and Economic Consequences 1241 …

Friends or foes? Target selection decisions of sovereign wealth funds and their consequencesFriends or foes? Target selection decisions of sovereign wealth funds and their consequences
www.sciencedirect.com [PDF]
… Despite the recent prominence of whistle-blowing events, we are not aware of prior work in the accounting and finance literatures that attempts to resolve the conflict between these … Whistle-Blowing: Target Firm Characteristics and Economic Consequences 1241 …

Firm financial performance following mergersFirm financial performance following mergers
link.springer.com [PDF]
… Despite the recent prominence of whistle-blowing events, we are not aware of prior work in the accounting and finance literatures that attempts to resolve the conflict between these … Whistle-Blowing: Target Firm Characteristics and Economic Consequences 1241 …



Q&A About Target Firm


Where do you find information about Target Firm's new plan for their employees ?

You can find information about Target Firm's new plan for their employees in paragraph two .

Why did the author write it on April 15th, 2018 ?

Because he wanted to inform his readers about Target Firm's new plan for their employees.

Why are targets often acquired at prices in excess of their fair market value?

Acquiring firms perceive additional strategic value to the acquisition, such as greater economies of scale. These economies do not always materialize however since there can be additional hidden costs associated with integration of two firms.

How can takeover attempts take on many different flavors?

Takeover attempts can take on many different flavors depending on the attitude of the target firm toward the acquirer.

What is a target firm?

A target firm is a company which is the subject of a merger or acquisition attempt.

When did the author write this paragraph?

The author wrote it on April 15th, 2018

What does "Target Firm" mean?

It means that Target firm will be sold to another company at a set price, which is called as target price or target value.

Can you name some hostile actions that may be taken by target firms?

Hostile actions include poison pills, golden parachutes, and white knights.

How many paragraphs are there in this article?

There are three paragraphs in this article.

Where was the article published?

The article was published on a website.

What does "Target Price" mean ?

It means that if someone wants to buy a share of stock from you they will pay you what ever amount they want but not more than your target price .

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