Definition of takeover
: the action or an act of taking over
Examples of takeover in a Sentence
The government experienced a military takeover in 2002.
the new government's high-handed takeover of private industries
Recent Examples of takeover from the Web
Egypt and Israel had imposed the closure after Hamas seized Gaza in a violent 2007 takeover that included battles with forces loyal to Dahlan.
If Norwegian gets into trouble, there is at least an obvious solution: a takeover by a rival with deeper pockets.
Investor confidence in Blue Apron has faded amid concerns over what a Jeff Bezos takeover of Whole Foods might mean.
In a Las Vegas case, a U.S. Justice Department investigation revealed that 11 associations were defrauded of tens of millions of dollars in a board of directors takeover scheme from 2003 to 2009.
Two months after the takeover, the Defense Nuclear Facilities Safety Board — an independent federal oversight agency in Washington — concluded that the lab’s staff of 10 criticality safety engineers would need to more than triple.
The company’s €142 million takeover of Talabat.com means it partners with Burger King, Pizza Hut and Subway in the Middle East.
Under a new state takeover law, Jack Martin, the district's financial specialist, was empowered to make the labor force reductions.
The DUAB amended a request for proposals in May to reflect changes made in the precedent-setting state takeover legislation.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'takeover.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of takeover
Financial Definition of TAKEOVER
What It Is
A takeover is the purchase of a company. A takeover is different from a merger, which occurs when the purchaser and the target both cease to exist and instead form a new, combined company.
How It Works
Let's assume Company XYZ wants to acquire Company ABC. Company XYZ might just start buying ABC shares on the open market, but once Company XYZ acquires 5% of ABC, it must formally (and publicly) declare how many shares it owns to the Securities and Exchange Commission. Company XYZ must also state whether it intends to create an ABC takeover or just hold its existing shares as an investment.
If Company XYZ indeed wants to proceed with the takeover, it will make a tender offer to ABC's board of directors (followed by an announcement to the press). The tender offer will indicate, among other things, how much Company XYZ is willing to pay for ABC and how long ABC shareholders have to accept the offer.
The most common methods of determining the target's value are to look at comparable companies in the industry and to conduct a discounted cash flow analysis, but evaluating other measures such as P/E ratios, price-to-sales ratios, or even replacement costs provides valuable insight. Acquirers often have to pay a premium above the market price of the target company's shares in order to get the shareholders to agree to the takeover.
Once the tender offer is made, ABC can accept the terms of the offer, negotiate a different price, use a "poison pill" or other defense to avert the deal, or find somebody else to sell to who will pay as much or more as XYZ is offering. If ABC accepts the offer, regulatory bodies then review the transaction to ensure the combination does not create a monopoly or other anticompetitive circumstances within the industries involved. If the regulatory bodies approve the transaction, the parties exchange funds and the deal is closed.
Why It Matters
Takeovers can create a bigger, more competitive, more cost-efficient entities. This synergy -- that is, the idea that the two companies together are more valuable to the shareholders than they are apart -- is elusive, but it is what justifies most takeovers. After all, acquirers always have the much harder option of trying to "grow their own" by starting their own competitive ventures instead of buying someone else's. Targets often succumb to takeovers because at the end of the day, the price is right. And on both sides, a well-executed takeover can be the crowning jewel of a CEO's career.
TAKEOVER Defined for English Language Learners
Definition of takeover for English Language Learners
: an occurrence in which a person, company, etc., takes control of something
Legal Definition of takeover
: the acquisition of control or possession (as of a corporation) a hostile takeover
Seen and Heard
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