What Is a "Just Say No" Defense?

A “just say no” defense is a technique used by boards of directors to deter hostile takeovers by refusing to negotiate and rejecting the potential buyer’s offer outright. The validity of a “simply say no” defense may rely on whether the target business has a long-term plan in place, which might include a merger with a company other than the one making the takeover proposal, or if the takeover price is undervalued.