Show Stopper

Show stopper

A legal barrier, such as a scorched-earth policy or shark repellant system, that firms use to prevent a takeover.

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show stopper

A legal barrier to a takeover attempt that is virtually impossible for the suitor to overcome. For example, a target company might convince state legislators to pass various antitakeover laws that would preclude the takeover. Compare shark repellent.

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Show Stopper

1. Any law or regulation that makes a hostile takeover impossible or prohibitively expensive. A show stopper may take the form of a court order or an act of legislation. The term implies that the target company takes some action in order to make the takeover difficult or impossible, but this is not always the case. See also: Antitakeover measure.

2. More generally, anything that prevents an activity or transaction from taking place as planned.