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 ?
Different studies have attempted to identify reasons why leading senior managers leave acquired companies.
Although the reasons for executive departure were not clear, Walsh and Ellwood (1991) found that managers from acquired companies who have the best performance records tended to leave early.
In an effort to explain why acquisitions often fail (Bergh, 1997; Boot, 1992; Kaplan & Weisbach, 1992; Porter, 1987), attention has begun to focus on the top executives of the acquired companies as they are intimately involved in implementation, one of the key factors that influences the success of acquisition strategy.
Acquired companies that retain executives possessing long organizational tenure are expected to have better implementation processes and more positive acquisition outcomes.
Directors of both the acquiring and acquired companies have a unique opportunity to creatively tackle the myriad problems that could potentially arise in a corporate merger.