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.


See also