Dry powder: Difference between revisions
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2. ''Mergers & acquisitions (M&A)''. | 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. | In the 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. | ||
Revision as of 08:27, 24 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 the 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.
