Defensive Tactics & Public Company M&A Terms
10 terms · Full definitions, seller & buyer perspectives, and real-world examples
Most terms in this category apply primarily to public company M&A — the hostile takeovers, poison pills, and proxy battles you read about in business news. For private company owners, the immediate relevance is limited, but these concepts matter for two practical reasons: you may one day sell to or receive an offer from a public company, and understanding public M&A will make you a more informed reader of the deal market.
Poison pills prevent hostile acquirers from accumulating shares. White knights are friendly acquirers invited to outbid unwanted suitors. Tender offers allow direct shareholder offers without board approval.
For private company sellers, the practical takeaway is that pricing dynamics of public M&A — strategic premiums, control premiums, competing bid dynamics — establish frameworks that inform how your own advisors price your private company sale.
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Pac-Man Defense
FullPac-Man Defense is a defensive tactic or public company mechanism used in the context of M&A transactions and corporate control contests.
Poison Pill
FullA defensive tactic (formally "shareholder rights plan") deployed by boards to deter hostile takeovers — creating rights for existing shareholders that trigger upon an acquirer crossing an ownership threshold, making unwanted acquisitions prohibitively expensive.
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White Knight
FullA friendly acquirer invited by the target company's board to outbid a hostile bidder — offering better terms or cultural fit while still completing a transaction. White knight defenses are used when a target board believes the hostile bid is too low or threatens the company's strategy. The white knight acquires the company at a negotiated price preferred by the board, defeating the hostile bidder. Primarily relevant in public company M&A; very rarely applicable in SMB/LMM private transactions.
White Squire
FullWhite Squire is a defensive tactic or public company mechanism used in the context of M&A transactions and corporate control contests.