Godfather Offer

A Godfather Offer is an acquisition offer that is usually for a whole lot more than the market value of the company in question, making it really hard (and sometimes impossible) for the company to turn down. This term gets its name from the line in The Godfather in which Don Corleone says he’s going to make someone an offer they can’t refuse.

Not to mix our gangster movie references here, but a godfather offer is less “say hello to my little friend” and more “say hello to my absolutely incontestable offer to take over your company.” These offers can sometimes be seen as hostile; there are times when the company doesn’t want to be bought out, but it just can’t say no to an offer that would keep it and its shareholders from going under.

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