| bidder | A firm or person that has made an offer to take over another firm.
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| consolidation | A merger in which an entirely new firm is created.
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| crown jewels | An antitakeover tactic in which major assets—the crown jewels—are sold by a firm when faced with a takeover threat.
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| golden parachutes | Compensation paid to top-level management by a target firm if a takeover occurs.
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| goodwill | The excess of the purchase price over the sum of the fair market values of the individual assets acquired.
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| keiretsu | A confederation of Japanese firms connected with cross holders of equity investments and a banking firm.
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| merger | Combination of two or more companies.
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| poison pill | Strategy by a takeover target company to make a stock less appealing to a company that wishes to acquire it.
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| purchase accounting | Method of reporting acquisitions requiring that the assets of the acquired firm be reported at their fair market value on the books of the acquiring firm.
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| shark repellent | Action taken by firm to make firm less attractive to potential bidders.
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| tender offer | Public offer to buy shares of a target firm.
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| white knight | A friendly new bidder in a hostile takeover contest.
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