Definition - What does Revlon Moment mean?
A Revlon Moment refers to a situation when a company takeover becomes inevitable. At this point, the Revlon Moment requires the Board to put aside any loyalty to the needs of management, the bank, employees, or other stakeholders and focus only on maximizing value for the shareholders.
Divestopedia explains Revlon Moment
The Revlon Moment has its roots from a legal case which was overturned by the Supreme Court of Delaware in 1985. Revlon, Inc. found itself in a hostile takeover, which management and the Board fought hard to defend. Ultimately, a white knight provided a friendly, but lower, bid that the Board accepted. The bid approval was overturned by the Supreme Court of Delaware, which claimed that in the case of a company sale, the Board must look after the shareholders first and accept the highest, and cleanest, bid in order to maximize shareholder value.
Acquisition Growth Strategies for Middle Market Companies
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