Target Firm
A firm that has been targeted by another firm for a takeover.
Investopedia Commentary
Companies are targeted for a number of reasons. A firm may be attractive because it possesses large cash reserves, undervalued real estate, or otherwise huge potential.
Related Links
The Basics of Mergers and Acquisitions
The Wacky World of M&As
Bloodletting And Knights: A Medieval Guide To Investing
See also: Acquisition Premium, Black Knight, Gray Knight, Hostile Takeover, Sleeping Beauty, Takeover, White Knight, Yellow Knight