No doubt, M&A is a way to grow a company. But what if the target doesn't want to sell-out?
One option: A hostile takeover.
True, it's an expensive and time-consuming option. And it's far from foolproof. Companies can have defenses such as the so-called "poison pill"), or another, more palatable bidder might be drawn to the table (known as a "White Knight.") The last wave of hostile takeovers in the "Go-Go '80s" had mixed results over the business landscape.
The latest issue of BusinessWeek, takes a look at the renewed vigor in this part of the deal world. Hostile activity is indeed increasing, and this time, it's global. A Thomson study indicates that in 2006, there were 110 unsolicited bids for a total of $351 billion (this is on a worldwide basis).
Corporate America has tons of cash to do deals. Private equity firms have even more. Hedge funds are becoming key players, as well, since such deals tend to result in premium stock prices for the target.
Tom Taulli is the author of various books, including the Complete M&A Handbook and operates DealProfiles.com.
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