HomeDefinitionsCompareDebt Scorched earth policyThe financial definition for Scorched earth policy:Often used in risk arbitrage. Any technique a company that has become the target of a takeover attempt uses to make itself unattractive to the acquirer. For example, it may agree to sell off its crown jewels, or schedule all debt to become due immediately after a merger. Click to compare definitions of Scorched earth policy Click to view definitions beginning sc |