Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Corporate Raid shopping experience:
1. Compare - without doubt the biggest advantage that the Corporate Raid offers shoppers today is the ability to compare thousands of Corporate Raid at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.
2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about
3. Testimonials - don't know anybody that has bought a Corporate Raid? Wrong! If the Corporate Raid is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.
4. Questions - Got a question about Corporate Raid then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....
5. Reputation - Never heard of the company selling Corporate Raid? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Corporate Raid and build up a picture of their reputation for sales, returns, customer service, delivery etc.
6. Returns - still worried that even after all of the above your Corporate Raid wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.
7. Feedback - happy with your Corporate Raid then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.
8. Security - check for the yellow padlock on the Corporate Raid site before you buy, and the s after http:/ /i.e. https:// = a secure site
9. Contact - got a question about Corporate Raid, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.
10. Payment - ready to pay for your Corporate Raid, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.
A
corporate raid is a
business term, sometimes also referred to as
breaking a company. It describes a particular type of hostile
takeover in which the assets of the purchased company are immediately sold off (business
liquidation). The target company essentially disappears in the process.
This can be a profitable exercise if the company holds
disposable assets or
liquidity investments that are valued higher than the company's current market capitalization. Examples would include companies holding valuable land or equipment, while their stock price is too low due to market factors. After taking a "hit" on their stock price for whatever reason, companies can become targets for a leveraged buyout.
Examples of this is an insurance company whose "float" or "reserves" are larger than the market cap or a real estate company or trust whose real estate could be sold for a larger sum than the market cap of the company.
History
Corporate raids became the hallmark of a handful of investors in the 1970s and 80s who built up large lines of credit and were able to purchase huge companies for little or no cash, often through the issuance of junk bonds. These
corporate raiders gained a reputation for destroying a number of well-run companies, although this may be somewhat overstating the issue.
However, the era of the corporate raider appears to be largely over. In the later 1980s the famous raiders suffered from a number of bad purchases that lost money (for their backers, primarily) and the credit lines dried up. In addition, corporations became more adept at fighting hostile takeovers through mechanisms such as the poison pill. Finally, in the 1990s the overall price of the American stock market increased, which reduced the number of situations in which a company's share price was low with respect to the assets that it controlled.
After the dot-com bubble burst, there was another wave of corporate takeovers. This time, they were called "
vulture capitalists" (a pun on
venture capitalists). They bought up dot-com companies in which the stock was very low and then sold out the inventory like desks, Aeron chairs, computers and
espresso machines.
Analysis
Opponents of the corporate raid argue that this typically occurs only with well-run companies who are successfully managing their money. In addition, they argue that corporate raids cause large economic disruption and create unemployment as factories are sold off and closed. Proponents of the corporate raid argue that companies which have huge assets and low stock prices are not managing their money well and should either attempt to regain market confidence (thereby boosting their share prices) or else liquidate some of their assets and return the money to their shareholders.
Some believe that one side effect of the corporate raiding era is that companies are much more defensive, which many argue is not a good thing for the
Economics. Others argue that corporate raids prevent corporate managers from becoming too complacent and serve to redistribute capital from weaker sectors to more productive sectors of the economy. In particular, some argue that the apparent superior performance of American companies in the 1990s in comparison with German or Japanese companies arose because the latter companies are protected from corporate raids.
In fiction
In the late 1980s, the corporate raid became a hot topic in the United States, to the point where a fictionalized corporate-raiding character named
Gordon Gekko (played by
Michael Douglas) formed the basis of the popular movie
Wall Street (film). In the movie, Gekko intended to take control of an airline in order to profit from its over-funded
pension, with complete disregard to the loss of jobs or other people factors involved in the deal. Jerry Sterner wrote a play called
Other People's Money which in 1991 was made into a movie starring Danny DeVito as "Larry the Liquidator." Corporate raiders of a sort were also featured in the 1983 film
Monty Python's The Meaning of Life. Richard Gere played a character in the film
Pretty Woman who built up his wealth via corporate raids.
See also
A
corporate raid is a
business term, sometimes also referred to as
breaking a company. It describes a particular type of hostile
takeover in which the assets of the purchased company are immediately sold off (business
liquidation). The target company essentially disappears in the process.
This can be a profitable exercise if the company holds disposable assets or
liquidity investments that are valued higher than the company's current
market capitalization. Examples would include companies holding valuable land or equipment, while their stock price is too low due to market factors. After taking a "hit" on their stock price for whatever reason, companies can become targets for a
leveraged buyout.
Examples of this is an insurance company whose "float" or "reserves" are larger than the market cap or a real estate company or trust whose real estate could be sold for a larger sum than the market cap of the company.
History
Corporate raids became the hallmark of a handful of investors in the 1970s and 80s who built up large lines of credit and were able to purchase huge companies for little or no cash, often through the issuance of junk bonds. These
corporate raiders gained a reputation for destroying a number of well-run companies, although this may be somewhat overstating the issue.
However, the era of the corporate raider appears to be largely over. In the later 1980s the famous raiders suffered from a number of bad purchases that lost money (for their backers, primarily) and the credit lines dried up. In addition, corporations became more adept at fighting hostile takeovers through mechanisms such as the
poison pill. Finally, in the 1990s the overall price of the American stock market increased, which reduced the number of situations in which a company's share price was low with respect to the assets that it controlled.
After the dot-com bubble burst, there was another wave of corporate takeovers. This time, they were called "
vulture capitalists" (a pun on venture capitalists). They bought up dot-com companies in which the stock was very low and then sold out the inventory like
desks,
Aeron chairs, computers and
espresso machines.
Analysis
Opponents of the corporate raid argue that this typically occurs only with well-run companies who are successfully managing their money. In addition, they argue that corporate raids cause large economic disruption and create unemployment as factories are sold off and closed. Proponents of the corporate raid argue that companies which have huge assets and low stock prices are not managing their money well and should either attempt to regain market confidence (thereby boosting their share prices) or else liquidate some of their assets and return the money to their shareholders.
Some believe that one side effect of the corporate raiding era is that companies are much more defensive, which many argue is not a good thing for the
Economics. Others argue that corporate raids prevent corporate managers from becoming too complacent and serve to redistribute capital from weaker sectors to more productive sectors of the economy. In particular, some argue that the apparent superior performance of American companies in the 1990s in comparison with German or Japanese companies arose because the latter companies are protected from corporate raids.
In fiction
In the late 1980s, the corporate raid became a hot topic in the
United States, to the point where a fictionalized corporate-raiding character named Gordon Gekko (played by
Michael Douglas) formed the basis of the popular movie
Wall Street (film). In the movie, Gekko intended to take control of an airline in order to profit from its over-funded pension, with complete disregard to the loss of jobs or other people factors involved in the deal. Jerry Sterner wrote a play called
Other People's Money which in 1991 was made into a movie starring
Danny DeVito as "Larry the Liquidator." Corporate raiders of a sort were also featured in the 1983
film Monty Python's The Meaning of Life. Richard Gere played a character in the film
Pretty Woman who built up his wealth via corporate raids.
See also
- Greenmail
- Junk bond
- Mergers and acquisitions
- Poison pill
- Takeover
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All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only.
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