A takeover in business is the acquisition of one firm (the target) by another (the acquirer or bidder). In the United Kingdom, the word refers to the purchase of a public firm whose shares are traded on a stock market, as opposed to the purchase of a private company.

The target company’s management may or may not agree with a proposed acquisition, resulting in the following takeover classifications: friendly, hostile, reversal, or back-flip. A takeover is frequently financed by loans or bond offerings, which may include junk bonds as well as simple cash bids. Shares in the new firm might also be included.