Safe Harbor (Noun)
Meaning
The target company defends itself by acquiring a company so onerously regulated that it makes the target less attractive; "the acquisition gave the company a safe harbor".
Classification
Nouns denoting acts or actions.
Examples
- The acquisition of the heavily regulated bank gave the company a safe harbor from the hostile takeover bid.
- Buying the struggling government contractor provided the conglomerate with a safe harbor from potential lawsuits related to the deal.
- By merging with the telephone company, the tech firm gained a safe harbor from regulatory scrutiny and potential antitrust issues.
- The merger with the stodgy utility company was a safe harbor for the riskier startup, providing a stable source of capital and revenue.
- Purchasing the troubled healthcare provider gave the private equity firm a safe harbor from the target company's significant debt and regulatory liabilities.