In business, a bear hug is an offer made by one company to buy the shares of another for a much higher per-share price than what that company is worth in the market. It's an acquisition strategy that companies sometimes use when there's doubt that the target company's management or shareholders are willing to sell.
The bear hug offer, though usually financially favorable, is generally unsolicited by the target company.
The name bear hug reflects the persuasiveness of the offering company's overly generous offer to the target company. By offering a price far in excess of the target company's current value, the offering party can usually obtain an acquisition agreement. The target company's management is essentially forced to accept such a generous offer because it's legally obligated to look out for the best interests of its shareholders.
To qualify as a bear hug, the acquiring company must make an offer well above market value for a large number of a company’s shares.
A business may attempt a bear hug in an effort to avoid a more confrontational form of takeover attempt or one that would require significantly more time to complete.
The acquiring company may use a bear hug to limit competition or acquire goods or services that complement its current offerings.

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