What Is an Acquirer? An acquirer is a company that obtains the rights to another company or business relationship through a deal. These deals are usually mergers or acquisitions, but can also be other structured agreements. Acquirers buy out a company and take over their ownership typically through a purchase of a large portion of
What Is an Acquisition? An acquisition is when one company purchases most or all of another company’s shares to gain control of that company. Purchasing more than 50% of a target firm’s stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company’s other shareholders. Acquisitions
What Is Acquisition Indigestion? Acquisition indigestion is a slang term that describes the practical difficulties that a company may face while adjusting to the consequences of a merger or acquisition deal. The integration process can be a rocky one. Employees can become stressed by the uncertainties inherent in a merger or acquisition involving their company.
What Is an Acquisition Adjustment? An acquisition adjustment describes the difference between the price an acquirer pays to purchase another company and the net original cost of the target’s assets. Also known as “goodwill”, it is a premium paid for acquiring a company for more than its tangible assets or book value. Key Takeaways An acquisition adjustment
What Is Acquisition Debt? Acquisition debt is a financial obligation taken on during the construction, improvement, or purchase of a primary or secondary residence. Thus, a home mortgage loan is an example of acquisition debt. The Internal Revenue Service (IRS) provides certain tax advantages for home acquisition debt. This should not be confused with acquisition financing, which
What Is Acquisition Financing? Acquisition financing is the capital that is obtained for the purpose of buying another business. Acquisition financing allows users to meet their current acquisition aspirations by providing immediate resources that can be applied to the transaction. Key Takeaways Acquisition financing is the funding a company uses specifically for the purpose of
What Is an Acquisition Premium? An acquisition premium is a figure that’s the difference between the estimated real value of a company and the actual price paid to acquire it. An acquisition premium represents the increased cost of buying a target company during a merger and acquisition (M&A) transaction. There is no requirement that a
What Is an Acquittance? An acquittance is a document which shows that a debtor has been released from a debt obligation by paying it in full. Key Takeaways Acquittance letters are issued by a lender or lien holder as proof that the owed amount has been satisfied.Banks and other mortgage lenders issue an acquittance once
What Is the Automated Confirmation Transaction (ACT) Service? Automated Confirmation Transaction (ACT) Service is an automated data system designed to document and report the clearing of trades on exchanges owned and operated by Nasdaq, which compares trade information entered by ACT participants and submits “locked-in” trades to National Securities Clearing Corporation (NSCC) for clearance and
What Is an Active Index Fund? An active index fund is a basket of assets in which the fund manager constructs the initial investment with holdings from a benchmark index and then adds securities unrelated to the underlying index or removes existing index components with the goal of driving portfolio performance higher. This additional layer of
