Sovereign Wealth Fund
State-owned investment fund often funded by central banks, who accumulate the funds in the course of their fiscal management of a nation’s banking system (foreign currency reserves, currency stabilization, etc). Tweet
Archive for August, 2009
August 6, 2009 | 0 comments | View Post
Real Option Synergies
Options that create flexibility for managers or extract commitments from others. The following are considered Real Option Synergies: Growth Options, Exit Options, Options to Defer, Options to Alter Operating Scale, Options to Switch. Tweet
August 6, 2009 | 0 comments | View Post
Political Risk
Component of Cross-Border Effects Analysis. Political Risk considers the probability a government will intervene to the detriment of the corporation by way of regulation, punitive tax policies, restriction on cash policies, expropriation of assets, etc. Many use the Sovereign Debt Credit Rating as a proxy for political risk. Tweet
August 6, 2009 | 0 comments | View Post
Poison Pill
Defense against a hostile acquisition which enacted by the board of directors provides shareholder the right to purchase common shares at a nominal cost upon the occurrence of a triggering event such as the acquisition of more than 10% of the company’s shares by a single party, partnership, or group. Tweet
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Operating Synergy
Operational benefit derived from a merger or acquisition. Operating Synergies usually take the form of greater efficiency from superior utilization of assets. Tweet
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Momentum Acquiring
Series of Corporate mergers and acquisitions for the primary purpose of growing either earnings per share or revenue. Tweet
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Minority Shareholder
Individual, company, partnership or group generally holding a sizable, but less than 50% ownership of a company. Tweet
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Market Value
Generally the per share price of a company’s stock multiplied by the number of share outstanding. Tweet
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Managerial Conglomerate
Conglomerate that Provide a flow of funds to each segment of their operations, exercise control, and are the ultimate risk takers. In theory, managerial conglomerates undertake strategic planning and participate in operating decisions by provide staff expertise and staff services to the operating entities. Tweet
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