Target company

A target company is an entity that has been selected as a takeover candidate by an acquirer. The selection is usually made based on certain minimum criteria that the acquirer has established. For example, a target company must have revenue that exceeds a certain threshold level, it has a reasonable revenue and profit growth rate, its products complement those of the acquirer, and it sells into a geographic region not already addressed by the acquirer.

The term can also be used to indicate a business that is being targeted for a lawsuit.

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