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Pre-offer Defenses

Definition - 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

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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    Equicapita's model is to acquire established, private small and medium sized enterprises (“SMEs”) located primarily in Western Canada.
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