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Pre-offer Defenses

What Does Pre-offer Defenses Mean?

Pre-offer defenses are preemptive defense mechanisms used to delay an acquisition in the hope of increasing the purchase price or remaining independent. There are a number of defenses used including:

  • Poison pills
  • Classified boards
  • Golden parachutes
  • Supermajority provisions
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Divestopedia Explains Pre-offer Defenses

With pre-offer defenses, two main goals are typically desired: either to make a firm's shares look less enticing or to make a firm's governance restrictions too limiting for a potential acquisition company to desire. The overall purpose of each option is to prevent or delay an acquisition.

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Sale ProcessCompany PremiumBuyer TypesLegalFinancial Buyers

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