Market for Corporate Control

The market for corporate control refers to the buying and selling of ownership stakes or entire companies, often as a way to improve company performance. When a company underperforms, investors or other firms may attempt to acquire it, believing they can manage it better or realize more value. This process includes mergers, acquisitions, and takeovers. Essentially, it’s a marketplace where ownership changes hands based on the potential to increase efficiency and profitability, aligning management incentives with shareholder interests and facilitating corporate restructuring or growth strategies.