Target Company

A target company refers to a firm that is being considered for acquisition or merger by another company, known as the acquirer. In business transactions, the acquirer analyzes the target company's financial health, assets, and market position to determine if it aligns with their strategic goals. The target may be sought for various reasons, such as expanding market share, gaining new technologies, or achieving cost efficiencies. Ultimately, this process aims to enhance the value of the acquirer while offering the target company potential benefits from the merger or takeover.