safe harbor


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Safe harbor

Often used in risk arbitrage as a form of shark repellent. A target company acquires a business so onerously regulated that it makes the target less attractive, giving it, in effect, a safe harbor.

Safe Harbor

1. An anti-takeover measure in which a potential target company buys a subsidiary in an industry that is so strictly regulated that it makes acquiring the target company difficult and/or expensive.

2. Legal protection from a lawsuit. Regulators often apply safe harbor to some corporate actions as long as those actions are taken in good faith.

safe harbor

1. A regulation that protects individuals or corporations from the legal consequences of certain actions they undertake. For example, firms filing forecasts with the SEC have a safe harbor from individuals or businesses that use the forecasts and are subsequently damaged (that is, they lose money), as long as the forecasts were prepared in good faith.
2. A tactic in which the target of an unfriendly takeover makes itself less attractive by taking a specific action.

safe harbor

A system of rules that, if followed exactly, will provide protection from the effects of other laws. For example, in a 1031 like-kind exchange, the use of a qualified intermediary and compliance with strict IRS deadlines will result in the ability to avoid paying taxes at the time of a sale.This is the safe harbor from normal tax liability rules.There are other ways to complete a like-kind exchange without paying taxes,but the seller embarks upon those uncharted waters at its own peril. A very slight miscalculation could result in the imposition of large taxes, penalties, and interest at a later date.

References in periodicals archive ?
All of the associations and Real Agent Guard are actively encouraging real estate firms and other businesses to offer their locations as a safe harbor.
SGS is able to provide Safe Harbor Assessment by a DABT qualified toxicologist to assess the product and determine whether any listed chemicals are present at exposure levels above the safe harbor level.
Taxpayers who have a qualified business use of more than one home for a tax year may use the safe harbor for only one home and must use the actual-expense method for the other home or homes.
The Safe Harbor Care manager will identify and take action to resolve issues or concerns raised by the patient or the family.
It was chosen for the project after the center lost a 100-year-old tree that had shaded the front yard of the Safe Harbor house.
Adoption finality: Under the safe harbor for the adoption finality, the IRS will treat an adoption of a foreign born child as final if:
1) The use of liquidation value will require partnerships to engage valuation experts on a regular basis to ensure their continued compliance with the safe harbor provisions.
regulatory agencies such as the Department of Commerce and the Federal Trade Commission are being lax in enforcing Safe Harbor.
This is the lesser of the 90% safe harbor amount ($14,000/$3,500) and the 100% safe harbor amount ($27,900/$6,975).
As PharmaVigilant continues to expand globally, Safe Harbor certification aligns with our global growth strategy," said James DeSanti, Founder and Chief Executive Officer, PharmaVigilant.
Through its Stewards of Children program, Safe Harbor offers many free prevention education classes for all members of the community, teaching adults and children how to recognize and protect against child abuse.