Dry powder

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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