Permitted Acquisition definition: Copy, customize, and use instantly
Introduction
The term "Permitted Acquisition" refers to an acquisition that is allowed or authorized under the terms of a contract, agreement, or legal framework. It typically involves an acquisition that meets certain conditions set by the parties, ensuring it does not violate any contractual restrictions or exceed specified limits. This term is commonly used in financial agreements, mergers, and acquisition contexts to outline the scope of acceptable transactions.
Below are various examples of how "Permitted Acquisition" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Permitted Acquisition" in financial covenants
This definition ties "Permitted Acquisition" to the scope of financial agreements.
"Permitted Acquisition" means any acquisition by the Borrower or its subsidiaries, which does not violate any financial covenants or restrictions outlined in the debt agreement, provided the acquisition meets all specified approval processes.
Definition of "Permitted Acquisition" in merger agreements
This definition connects "Permitted Acquisition" to merger and acquisition scenarios.
"Permitted Acquisition" refers to an acquisition that is not prohibited by the terms of the merger agreement, subject to compliance with all necessary approvals, due diligence, and other conditions set forth in the agreement.
Definition of "Permitted Acquisition" in investment agreements
This definition links "Permitted Acquisition" to investment guidelines.
"Permitted Acquisition" means any acquisition that falls within the investment criteria outlined in the investment agreement, including but not limited to acquisitions that maintain or improve the overall value and strategic objectives of the investor’s portfolio.
Definition of "Permitted Acquisition" in credit agreements
This definition ties "Permitted Acquisition" to credit terms.
"Permitted Acquisition" refers to an acquisition that is in full compliance with the terms of the credit agreement, ensuring the borrower meets the necessary thresholds, conditions, and covenant tests for acquiring another entity.
Definition of "Permitted Acquisition" in corporate governance
This definition connects "Permitted Acquisition" to governance procedures.
"Permitted Acquisition" means any acquisition that has been approved by the board of directors and meets all governance guidelines, including financial performance metrics, strategic alignment, and legal compliance.
Definition of "Permitted Acquisition" in tax-related agreements
This definition links "Permitted Acquisition" to tax obligations.
"Permitted Acquisition" refers to an acquisition that is structured in such a way that it complies with applicable tax regulations and does not adversely affect the parent company's tax status or result in any unintended tax liabilities.
Definition of "Permitted Acquisition" in antitrust contexts
This definition ties "Permitted Acquisition" to regulatory approval.
"Permitted Acquisition" means any acquisition that does not violate antitrust laws or regulations, ensuring that the acquisition does not create anti-competitive effects and has been approved by the relevant regulatory authorities.
Definition of "Permitted Acquisition" in joint venture agreements
This definition links "Permitted Acquisition" to joint venture structures.
"Permitted Acquisition" refers to an acquisition by a joint venture partner that is authorized under the terms of the joint venture agreement, subject to the approval of other partners and adherence to any relevant financial or operational conditions.
Definition of "Permitted Acquisition" in financing agreements
This definition ties "Permitted Acquisition" to financing terms.
"Permitted Acquisition" means an acquisition that does not result in a breach of any financing agreements, such as covenants related to leverage, liquidity, or capital expenditures, and is within the limits set by the terms of the financing agreements.
Definition of "Permitted Acquisition" in loan agreements
This definition connects "Permitted Acquisition" to loan conditions.
"Permitted Acquisition" refers to any acquisition that does not breach the loan agreement, ensuring compliance with the specific criteria outlined in the loan terms, such as debt service coverage, leverage ratio, or other relevant financial parameters.
Definition of "Permitted Acquisition" in securities agreements
This definition links "Permitted Acquisition" to security regulations.
"Permitted Acquisition" means any acquisition that complies with the securities laws and regulations governing the transaction, ensuring no violation of securities offering rules, disclosure obligations, or reporting requirements.
Definition of "Permitted Acquisition" in ownership structures
This definition ties "Permitted Acquisition" to changes in ownership.
"Permitted Acquisition" refers to the acquisition of additional ownership interests in a subsidiary or related entity, subject to restrictions on the percentage of ownership and the approval of relevant stakeholders.
Definition of "Permitted Acquisition" in stockholder agreements
This definition connects "Permitted Acquisition" to shareholder restrictions.
"Permitted Acquisition" means an acquisition of shares or assets by a shareholder or related party that is authorized by the stockholder agreement, ensuring no violation of transfer restrictions or limits on share ownership.
Definition of "Permitted Acquisition" in corporate strategy
This definition links "Permitted Acquisition" to strategic goals.
"Permitted Acquisition" refers to an acquisition that aligns with the strategic objectives of the parent company, ensuring that the acquisition is consistent with the company's long-term business and growth goals.
Definition of "Permitted Acquisition" in asset purchases
This definition ties "Permitted Acquisition" to asset acquisition terms.
"Permitted Acquisition" means any purchase of assets by the company that complies with the defined criteria for acquisitions, including asset valuation, purchase price, and any other due diligence requirements.
Definition of "Permitted Acquisition" in financial reporting
This definition connects "Permitted Acquisition" to reporting obligations.
"Permitted Acquisition" refers to an acquisition that is fully compliant with the company's financial reporting obligations, including proper accounting treatment, disclosure requirements, and any necessary adjustments to the consolidated financial statements.
Definition of "Permitted Acquisition" in debt covenants
This definition links "Permitted Acquisition" to debt-related limitations.
"Permitted Acquisition" means an acquisition that does not violate any debt covenants or restrictions set forth in the debt agreement, including limits on additional indebtedness or changes to the debt structure.
Definition of "Permitted Acquisition" in regulatory filings
This definition ties "Permitted Acquisition" to regulatory requirements.
"Permitted Acquisition" refers to an acquisition that is fully compliant with the regulatory filing requirements, ensuring that all necessary notifications, filings, or approvals are obtained from the appropriate government agencies.
Definition of "Permitted Acquisition" in business acquisitions
This definition connects "Permitted Acquisition" to the overall process of acquiring businesses.
"Permitted Acquisition" means any business acquisition that has been approved according to the terms and conditions outlined in the acquisition agreement, and which meets all specified legal, financial, and operational requirements.
Definition of "Permitted Acquisition" in post-acquisition conditions
This definition links "Permitted Acquisition" to post-deal conditions.
"Permitted Acquisition" refers to acquisitions that are subject to post-closing conditions and requirements, including operational integration, compliance with warranties and representations, and alignment with post-acquisition strategy.
Definition of "Permitted Acquisition" in management approvals
This definition ties "Permitted Acquisition" to management oversight.
"Permitted Acquisition" means any acquisition that has received the necessary approvals from senior management, ensuring that the transaction aligns with the company’s financial goals and risk management strategy.
Definition of "Permitted Acquisition" in cross-border transactions
This definition connects "Permitted Acquisition" to international business.
"Permitted Acquisition" refers to an acquisition of a foreign company or assets that complies with international regulations and meets the necessary legal, financial, and operational conditions in both the domestic and foreign jurisdictions.
Definition of "Permitted Acquisition" in performance clauses
This definition ties "Permitted Acquisition" to performance-based terms.
"Permitted Acquisition" means any acquisition that meets the performance criteria and other operational benchmarks set forth in the agreement, ensuring that the acquired entity contributes positively to the overall business performance.
Definition of "Permitted Acquisition" in divestiture agreements
This definition links "Permitted Acquisition" to divestitures.
"Permitted Acquisition" refers to acquisitions that do not interfere with any divestiture agreements or restrictions placed on the company, ensuring that any sale or transfer of assets remains in compliance with the terms of the divestiture agreement.
Definition of "Permitted Acquisition" in operational conditions
This definition connects "Permitted Acquisition" to operational flexibility.
"Permitted Acquisition" means an acquisition that is in compliance with the operational requirements outlined in the operational agreement, ensuring that the transaction does not disrupt the business operations or strategic plans of the company.
Definition of "Permitted Acquisition" in asset protection
This definition ties "Permitted Acquisition" to protection clauses.
"Permitted Acquisition" refers to an acquisition that does not jeopardize the asset protection mechanisms established in the agreement, ensuring that assets remain safeguarded and that the acquiring entity adheres to all protective measures.
Definition of "Permitted Acquisition" in ownership transfers
This definition links "Permitted Acquisition" to changes in equity ownership.
"Permitted Acquisition" means any transfer of ownership or equity interest that is authorized by the governing agreement, ensuring that such transfers do not violate pre-existing rights, conditions, or restrictions.
Definition of "Permitted Acquisition" as a Strategic Acquisition
This definition connects "Permitted Acquisition" to acquisitions made for strategic purposes.
"Permitted Acquisition" refers to an acquisition of assets or equity that aligns with the strategic goals of the acquiring party, ensuring the acquisition is in line with long-term business objectives and approved plans.
Definition of "Permitted Acquisition" as an Acquisition with Board Approval
This definition ties "Permitted Acquisition" to acquisitions requiring board approval.
"Permitted Acquisition" means an acquisition that has received the necessary approval from the board of directors or other governing body, ensuring that it complies with corporate governance requirements.
Definition of "Permitted Acquisition" as an Acquisition within Financial Limits
This definition applies "Permitted Acquisition" to acquisitions with financial restrictions.
"Permitted Acquisition" refers to any acquisition where the financial value does not exceed a predefined limit, ensuring that acquisitions remain within acceptable financial boundaries established by the company.
Definition of "Permitted Acquisition" as an Acquisition of Non-Core Assets
This definition connects "Permitted Acquisition" to acquisitions involving non-core assets.
"Permitted Acquisition" means an acquisition of assets or businesses that are non-core to the acquiring party's operations, subject to specific limitations regarding the strategic fit and financial impact.
Definition of "Permitted Acquisition" as an Acquisition Subject to Regulatory Approval
This definition ties "Permitted Acquisition" to regulatory compliance.
"Permitted Acquisition" refers to an acquisition that is subject to and has obtained the necessary regulatory approvals, ensuring compliance with all relevant laws and regulations.
Definition of "Permitted Acquisition" as an Acquisition of Competitors
This definition applies "Permitted Acquisition" to acquiring competitors.
"Permitted Acquisition" means the acquisition of another business or entity that operates in the same market or sector, provided the acquisition complies with anti-competition regulations and does not create monopolistic concerns.
Definition of "Permitted Acquisition" as an Acquisition for Business Expansion
This definition connects "Permitted Acquisition" to business expansion goals.
"Permitted Acquisition" refers to an acquisition made with the intent to expand the acquiring company's operations, either geographically or by adding new product lines, in alignment with approved growth strategies.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.