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.
When Selling Your Business, What Sale Process Is Best?
Join thousands of others with our weekly newsletter