The Basics of Corporate Takeovers
McCullough, Sean P.
MetadataShow full item record
People are dependent upon corporations as employees, shareholders, and as a community. Yet, as dependent as we are upon corporations, few of us know anything about an important part of everyday business, corporate takeovers. The purpose of this paper is to give the reader a basic knowledge of takeovers. It is important for everyone affected by business activities to understand how and why takeovers happen. The scope of this paper covers why takeovers are initiated, financial characteristics of a takeover target, and how takeovers are financed. My analysis is limited by the reader's level of financial understanding. This paper is designed to guide a reader with a limited grasp of financial concepts through the basics of corporate takeovers. The reader is then taken through an analysis of four real companies to determine which would be the best takeover target. Research has been done using secondary sources for the bulk of the paper including magazine articles, newspaper articles, books, and annual reports.