What Is Merger Mania? Merger mania is a catch-all phrase used to describe bouts of frenzied deal-making activity, often at the top of the merger and acquisition (M&A) cycle. It is associated with companies paying crazy prices, financed by excessive levels of debt, in a desperate attempt to quickly boost revenues and profits. Key Takeaways Merger mania
What Are Mergers and Acquisitions (M&A)? Lara Antal/Investopedia The term mergers and acquisitions (M&A) refers to the consolidation of companies or their major business assets through financial transactions between companies. A company may purchase and absorb another company outright, merge with it to create a new company, acquire some or all of its major assets
What Are Merger Securities? Merger securities are non-cash assets paid to the shareholders of a corporation that is being acquired by or merged with another company. These securities generally consist of bonds, options, preferred shares, and warrants. Key Takeaways Merger securities are non-cash assets paid to the shareholders of a corporation that is being acquired
What Is a Merkle Root? A Merkle root is the hash of all the hashes of all the transactions that are part of a block in a blockchain network. Key Takeaways A Merkle root is a simple mathematical way to verify the data on a Merkle tree.Merkle roots are used in cryptocurrency to make sure data
What Is Merrill Lynch & Co.? Merrill Lynch & Co. is the former name of a prominent Wall Street investment firm. Since its acquisition by Bank of America (BAC) in 2009, it has become known simply as “Merrill” and operates as a wealth management division of Bank of America. Founded by Charles E. Merrill in
Merton Miller was an American economist, professor, and author. Known for the development of the Modigliani-Miller theorem, he was awarded the Nobel Prize in economics in 1990 for his contributions to the field of corporate finance. Miller is the author of several books including, Merton Miller on Derivatives and Financial Innovations and Market Volatility. Merton
What Is the Merton Model? The Merton model is a mathematical formula that stock analysts and commercial loan officers, among others, can use to judge a corporation’s risk of credit default. Named for the economist Robert C. Merton, who proposed it in 1974, the Merton model assesses the structural credit risk of a company by
What Is the Metcalf Report? The Metcalf Report was a critical report on the U.S. accounting profession and the influence of the “Big 8” accounting firms, released in 1976 by Senator Lee Metcalf, who had chaired a U.S. Senate committee that examined the accounting industry. The report’s main focus was on the need for change
What Are Metrics? Metrics are measures of quantitative assessment commonly used for assessing, comparing, and tracking performance or production. Generally, a group of metrics will typically be used to build a dashboard that management or analysts review on a regular basis to maintain performance assessments, opinions, and business strategies. Understanding Metrics Metrics have been used in
What Is a Multiple Employer Welfare Arrangement (MEWA)? A multiple employer welfare arrangement (MEWA) is a system for marketing health and welfare benefits to employers, for their employees. Also described as a “multiple employer trust (MET),” a multiple employer welfare arrangement happens when a group of employers combines their contributions in a self-contributing benefits plan
