Target company

How it is used

Often just 'the target' or, in an SPA, 'the Company'. Due diligence focuses on the target company's contracts, employees, assets, debts and disputes. In a takeover, the target's board must advise its shareholders on the offer.

Example sentences

1. The target company has three subsidiaries and 500 employees.

2. We reviewed all of the target company's customer contracts for change of control clauses.

Common collocations

• acquire a target company
• target company's shareholders
• identify a target
• change of control

Related terms

• acquisitionThe purchase of a company, part of a company or a business, usually by buying its shares or its assets.
• due diligenceA detailed investigation of a company's legal, financial and commercial position, carried out before buying it, investing in it or signing a major contract with it.
• takeoverThe act of gaining control of a company, usually a listed one, by buying a majority of its shares, sometimes against the wishes of its management.
• share purchase agreementThe main contract in a company acquisition, under which the seller transfers shares in the target company to the buyer for an agreed price.

More terms: Mergers & Acquisitions

• merger
• closing
• condition precedent
• earn-out