A buyout offer by the acquirer to the target so favorable that the shareholders of the target are highly unlikely to refuse. The Bear Hug not only offers a price significantly higher than the current market price, but the offer is likely to consist of cash payments as well.
Will Dearman is the Editor of TheStrategyBlog. His professional experience includes acquiring and later selling a portfolio of Internet-based companies as well as working as a credit underwriter in Bank of America's commercial middle market bank. His interests include finance, innovation, strategy and social technology. Find him on Twitter!