Definition
Using inflated company stock as currency to acquire other companies, a strategy that's great for acquirers, terrible for shareholders, and indicative of overvaluation.
Example Usage
We paid for our three acquisitions with stock issued at our Series B valuation, which looked brilliant at the time and foolish once our stock crashed 70% in the next down round.
Origin
From merger and acquisition terminology
Fun Fact
Companies that aggressively use acquisition currency tend to underperform following busts, suggesting that stock-denominated deals often make sense only during bubbles
Source: Mergers and acquisitions terminology
Related Terms
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See “Acquisition Currency” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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