Upstairs deal

What means are upstairs mean?

A business agreement that is made by senior management and employees, is typically unknown lower-level until it publicly announced. The deal is called a "upstairs deal" as executives have generally their offices on the higher floors of an office building. Mergers and acquisitions is a upstairs agreement between two companies rather lead a friendly takeover, as opposed to a hostile takeover.

Investopedia explains upstairs deal

To keep executives to operate with a reduced risk from external parties can profit from the deal word about a possible merger of drive stock prices. A takeover bid announced that stocks will respond by either above or below the given target. For example calls a business in which a company an offer of $15 per share of stocks that currently trading at $10 per share will probably to cause when announced in shares, adaptation to $15.