What does the slang term “suicide pill” mean in finance?
If a company is on the verge of being acquired by another company, and they don’t want to be acquired, then they might take a suicide pill. There is no concrete way to commit financial suicide.
Basically, any extreme action by the company to prevent being acquired would be considered financial suicide. Examples include taking out a massive amount of debt, agreeing to partnerships where the terms make no sense, or selling stock at a massive discount.
Back To All Questions