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Executives at those companies understand that risk and set up all kinds of landmines to scare private equity away. A simple example would be, they could put th
by gitfan86 4y ago
Executives at those companies understand that risk and set up all kinds of landmines to scare private equity away.
A simple example would be, they could put the IT support department under the "VP of Crypto" instead of under the "Director of IT". So private equity comes in and fires the entire crypto department because they assume it is useless and then find out that no one can get their passwords reset or computer replaced.
More complex examples involve finance. You could transfer stock in your company to a banker as collateral for a loan with the condition that if the loan is paid off early there is a 1 billion dollar fee. Taking a company private requires that the buyer buy all the public stock.
- dchftcs 4y agoAre you able to point to resources that document some of those examples? Just curious.
- gitfan86 4y agohttps://www.investopedia.com/ask/answers/042315/how-can-company-resist-hostile-takeover.asp https://www.investopedia.com/ask/answers/042315/how-can-comp...
- DebtDeflation 4y agoAnti-takeover measures have been around for 40+ years and generally are referred to as "poison pills". https://en.wikipedia.org/wiki/Shareholder_rights_plan https://en.wikipedia.org/wiki/Shareholder_rights_plan
- ak_111 4y agoIs it really that common to be bought by private equity to see it as an ever present threat?