Definition

Noun: A friendly takeover is an acquisition of one company by another where the board of directors and management of the target company agree to and support the takeover bid. This contrasts with a hostile takeover, where the acquisition is pursued against the wishes of the target's management.

Usage

This term is used in the context of corporate finance, mergers, and acquisitions (M&A). It describes a cooperative and negotiated business transaction.

Examples

• The merger was structured as a friendly takeover, with both companies' boards unanimously approving the deal.
• After weeks of negotiations, the larger corporation completed a friendly takeover of the innovative startup.
• The friendly takeover was seen as a strategic move to combine resources and expand market share.

Advanced Usage

• "to be subject to a friendly takeover": To be the target company in such an acquisition.
  • The family-owned business was subject to a friendly takeover by a multinational conglomerate.
• "to engineer/execute a friendly takeover": To plan and carry out such an acquisition.
  • The CEO was credited with engineering the friendly takeover that saved the company from bankruptcy.

Variants and Related Words

• Hostile Takeover (n): An acquisition that is resisted by the target company's management and board.
• Merger (n): A general term for the combination of two companies, which can be the result of a friendly takeover.
• Acquisition (n): The act of one company purchasing most or all of another company's shares or assets.

Synonyms

• Agreed takeover
• Negotiated acquisition
• Cooperative merger

Antonyms

• Hostile takeover
• Unwanted bid

Noun

1. a takeover that is welcomed by the management of the target company