Dry powder: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Mend link.) |
imported>Doug Williamson (Add origin.) |
||
| Line 7: | Line 7: | ||
In context of M&A, dry powder means the amount of capital that is available to financial or strategic buyers for investment in strategic acquisitions, portfolio companies or add-on acquisitions. | In context of M&A, dry powder means the amount of capital that is available to financial or strategic buyers for investment in strategic acquisitions, portfolio companies or add-on acquisitions. | ||
The term originates from the historical use of gunpowder in the military. | |||
A reserve of dry gunpowder was essential to firing weapons. | |||
Revision as of 10:58, 19 July 2019
1.
Dry powder means cash or near-cash kept on hand by an organisation to meet future financial obligations or other expenditure.
2. Mergers & acquisitions (M&A).
In context of M&A, dry powder means the amount of capital that is available to financial or strategic buyers for investment in strategic acquisitions, portfolio companies or add-on acquisitions.
The term originates from the historical use of gunpowder in the military.
A reserve of dry gunpowder was essential to firing weapons.
