Define: Vendor Placing

UK Accounting Glossary

Definition: Vendor Placing


Quick Summary of Vendor Placing


A type of placing used as a method of financing a takeover in which the purchasing company issues its own shares as payment to the company being bought, with the prearranged agreement that these shares are then placed with investors in exchange for cash.



What is the dictionary definition of Vendor Placing?

Dictionary Definition


Vendor placing is a type of placing used as a means of acquiring another company or business.


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Full Definition of Vendor Placing


This is a type of placing used as a means of acquiring another company or business.

For example: If company A wishes to buy a business from Company B, it issues company A shares to company Y as payment alongside a prearranged agreement that those shares are then placed with investors in exchange for cash.

Vendor placings are sometimes utilised as a cheaper alternative to a rights issues; and as such are quite popular with some companies.


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Vendor Placing FAQ's



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https://payrollheaven.com/define/vendor-placing/
Modern Language Association (MLA):
Vendor Placing. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 17, 2019 https://payrollheaven.com/define/vendor-placing/.
Chicago Manual of Style (CMS):
Vendor Placing. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/vendor-placing/ (accessed: September 17, 2019).
American Psychological Association (APA):
Vendor Placing. PayrollHeaven.com. Retrieved September 17, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/vendor-placing/

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This glossary post was last updated: 4th May 2019.