Acquiree


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Acquiree

A firm that is being acquired.

Acquiree

A company that is the object of a takeover attempt. That is, another company is buying the acquiree's shares with the intent of obtaining a majority stake. This may occur with or without the authorization of the acquiree's board of directors. An acquiring company identifies potential acquirees based on a variety of factors, including share price and growth potential; in the event of a hostile takeover, the acquirer may buy up to 5% of the acquiree without publicly disclosing its intentions.
References in periodicals archive ?
In a business combination achieved in stages, the acquisition-date fair value of the acquirer's previously held equity interest in the acquiree.
Contingent consideration usually is an obligation of the acquirer to transfer additional assets or equity interests to the former owners or members of an acquiree as part of the exchange for control of the acquiree if specified future events occur or conditions are met.
Other Utah acquirees describe important aspects of the phases, including completing a thorough, reality-based prehoneymoon due diligence and business plan.
The value of the business acquired under the new standard will usually be measured as the sum of the acquisition-date fair values of the following three items: Consideration transferred for the acquiree; for step acquisitions (those achieved in stages), equity interests in the acquiree held by the acquirer immediately before the acquisition date; and for a partially owned subsidiary, noncontrolling interests in the acquiree held by third parties.
In the absence of evidence to the contrary, consideration transferred by the acquirer at the acquisition date is presumed to be the best evidence of the fair value of the acquirer's interest in the acquiree.
Krishnan, Miller, and Judge (1997) found that when acquirer and acquiree managers had complementary backgrounds, the top management turnover in the acquired firm was lower.
The purchase method only allows the income of the acquiree to be combined with the income of the acquirer from date of acquisition forward.
The forecast would include estimating the fair value of consideration, including contingent consideration; developing a forecasted historical cost balance sheet of the acquiree and adjusting the balance sheet to fair values; estimating the time periods over which the fair value adjustments will be included in post-combination earnings; and estimating acquisition expenses and other incremental effects of the acquisition.
According to the EDs, goodwill is still an unidentifiable residual value and is computed as the difference between the fair value of the acquiree as a whole and the fair value of the net assets acquired.
It was GM's great fortune that EDS refused to let GM do to it what almost every acquirer has done to every acquiree.
You might find that bank merger activity is not merely something you read about in the newspaper: your bank may be a player, either as an acquirer or an acquiree.
It's a good idea to check with the Public Relations Department to be sure that what you're saying will complement the public stance of both the acquirer and acquiree.