Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
50% - Moderately


Synonyms:aquisition, merger, purchase
Filed Under: financial-banking, investments, legal-contracts
Tags: banking, contract, investment, legal

Definition of takeover

1. The acquisition of a company by another company. The company being acquired is typically called the "target" and the one purchasing is typically called the "acquirer" or "bidder." There are four common types of takeovers: "friendly takeovers," "hostile takeovers", "reverse takeovers," and "backflip takeovers." A friendly takeover is a purchase where both parties' management approve of the sale. A hostile takeover is a purchase where the target company's management is against the sale, but the bidder can go around them and purchase the company directly from the shareholders. A reverse takeover is when a private company purchases a publically traded company, often to bypass the IPO process. A backflip takeover is when the purchasing company becomes a subsidiary of the purchased company.

Related Terms and Acronyms:

  • annex   To add one thing onto another.
  • backflip takeover   A form of takeover where the purchasing company becomes a subsidiary of the purchased company.
  • friendly takeover   When a company purchases another and both parties' management approve.
  • hostile takeover   When a company purchases another but the target company's management does not approve.
  • reverse takeover   The purchase of a public company by a private company, often to avoid the IPO process.

Search the Glossary

Best Mortgage Rates
With a lower mortgage rate, it's easier to afford a better home and what you save on interest can go directly toward paying off the principal value of your property faster. Make sure you get the best rates in Canada on your mortgage, apply today.
Mortgage Rates
Great Mortgage Rates
You looking to find a low mortgage rate? Most of the time, getting the best rate for your mortgage is about who you go to more than your credit history. Shop the market using a mortgage broker and you won't be left paying high interest rates.
Best Mortgage Rates
Amazing Mortgage Calculator
We don't like to boast, but we think the our new mortgage calculator is amazing. It can automatically generate charts and graphs that correspond with the rates, terms and amortizations that you enter, while letting you compare two different mortgages side-by-side. And if you're feeling feisty, you can even add in lump sum payments and see how they affect your mortgage.
Amazing Mortgage Calculator