Difference between revisions of "Dry powder"

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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.
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The term originates from the historical use of gunpowder in the military.
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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.


See also