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Acquisition Premium
is the amount by which the price offered exceeds the preacquisition market value of the target company. TERM 2
Corporate venturing (New venture
development)
DEFINITION 2 is the process of developing new businesses as an outgrowth of a company's established business operations. It is also referred to an corporate entrepreneurship or intrapreneurship since it requires entrepreneurial-like qualities within a larger enterprise. TERM 3
Transaction costs
DEFINITION 3 are the costs of completing a business agreement or deal of some sort, over and above the price of the deal. They can include the costs of searching for an attractive target, the costs of evaluating its worth, bargaining costs, and the costs of completing transactions. TERM 4
Related Businesses
DEFINITION 4 possess competitively valuable cross-business value chain and resource matchups TERM 5
Unrelated Businesses
DEFINITION 5 have dissimilar value chains and resource requirements, with no competitively important cross-business relationships at the value chain level.
Strategic Fit
exists when the value chains of different businesses present opportunities for cross business resources transfer, lower costs through combining the performance of related value chain activities or resource sharing, cross-business use of a potent brand name, and cross-business collaboration to build stronger competitive capabilities. TERM 7
Specialized resources and capabilities
DEFINITION 7 ...have very specific applications and their use is limited to a restricted range of industry and business types, in contrast to generalized resources and capabilities TERM 8
Generalized resources and
capabilties
DEFINITION 8 can be widely applied and can be deployed across a broad range of industry and business types TERM 9
Economies of Scope
DEFINITION 9 are cost reductions that flow from operating in multiple businesses (a larger scope of operation), whereas economies of scale accrue from a larger-size operation. TERM 10
Restructuring
DEFINITION 10 refers to overhauling and streamlining the activities of a business - combining plants with excess capacity, selling off underutilized assets, reducing unnecessary expenses, and otherwise improving the productivity and profitability of a company.
Companywide Restructuring
companywide restructuring (corporate restructuring) involves divesting some businesses and acquiring others so as to put a whole new face on the company's business lineup.
