Go Shop Period

  

When a public company is for sale, even after it’s received a purchase offer from another entity, it can still ask around for other, better purchase offers. This period of time...the period between receiving the first purchase offer and ultimately accepting (or not accepting) it...is known as a “go shop period.” Essentially, the company can still “go shop” for better offers.

It’s like selling a house: even if we receive one offer from a buyer, we can still receive offers from other buyers until we officially accept an offer.

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Finance: What's the difference between m...22 Views

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Finance allah shmoop what's the difference between mergers and acquisitions

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all right people listen up Merger that's what's about to

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happen here it's a merger acquisition that's what's about to

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happen here Corporate america is kind of same thing when

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two companies merge while they generally you know attracted to

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each other hopefully respect each other they share stock or

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combined the stocks of each side and you know combine

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efforts and then and then cuddle afterwards if they're successful

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at the merger than the combination of two roughly equals

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yields more than the one plus one combo that made

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them so two companies get together on generally equal ish

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footing In that case acquisitions are a combining more like

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that eating thing on much different footing The large company

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eats or buys the target either using its more highly

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valued stock currency or it's taft to do so Well

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why would a company acquire another Well the target might

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have one hundred employees ninety of whom can be fired

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with massive expense savings after the acquisition For the acquirer

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such that economically the acquisition won't just makes a whole

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lot of financial sense acquisitions happen for market power reasons

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As well like imagine the negotiating leverage that amazon would

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have if it bought the next five biggest online retailers

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Or maybe it'll just kill them Probably not legal for

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them to buy him anyway given the monopoly like dominance

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of amazon these days But wow that would be a

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powerful set of acquisitions And that would be a good

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reason for ems on to acquire a whole bunch Things

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and bezos would grow even more powerful maybe too powerful

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Finance: What are accretive v dilutive v neutral acquisitions?
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