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Friendly Takeover
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   Also found in: Dictionary/thesaurus, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia 0.01 sec.
Friendly takeover
Merger when the target firm's management and board of directors is in favor of the takeover. Antithesis of hostile takeover.

Friendly Takeover
The acquisition of one company by another with the full knowledge and consent of the target company's board of directors. Generally speaking, a friendly takeover requires the approval of shareholders in addition to the board of directors, but, in this case, shareholders tend to follow the board's lead. This is because, in a friendly takeover, the acquiring company offers a premium to the current stock price for each share. See also: Hostile takeover.

friendly takeover
The acquisition of a firm with approval of the acquired firm's board of directors. Compare unfriendly takeover.


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