Listen to a Business English Dialogue About Takeover target
Gerald: Hey Ava, have you heard about the recent takeover target in the market?
Ava: Hi Gerald, yes, I heard about it. A takeover target is a company that another firm intends to acquire through a merger or acquisition.
Gerald: Exactly. It’s often seen as an attractive opportunity for investors because when a company becomes a takeover target, its stock price usually increases due to the potential for a buyout offer. Do you think it’s a good strategy for investors to invest in takeover targets?
Ava: Well, it depends. Investing in takeover targets can be profitable if the acquisition goes through at a favorable price. However, there’s also a risk that the deal might fall through, leading to a decline in the stock price.
Gerald: That’s true. Investors need to carefully assess the likelihood of the acquisition being completed and the potential impact on the target company’s stock price. Have you ever invested in a takeover target before?
Ava: No, I haven’t. But I’ve been following the news and analyzing potential takeover targets to understand how they might affect my investment portfolio. Have you had any experience with investing in takeover targets?
Gerald: Yes, I have. I’ve invested in a few companies that were rumored to be takeover targets, and some of them turned out to be successful investments. However, I’ve also had instances where the deals fell through, resulting in losses. So, it’s essential to conduct thorough research and consider the risks before investing in takeover targets.