Hostile Takeover
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Todd Lovejoy has built a notable track record as a business leader and consultant in California. Serving as the principal at TAL Management Services, LLC, in Livermore, he brings 25 years of experience in developing and expanding companies in industries such as telecommunications and aerospace. Todd Lovejoy’s successes include repelling a hostile takeover aimed at a family-owned company and raising that company’s revenues to record levels, reaching $9 million and $9.5 million in successive quarters.
A hostile takeover involves an attempt on the part of one company to acquire a controlling interest in another against the wishes of the target company’s leadership. The acquiring company can accomplish its goal by either replacing existing management to push the acquisition through or by influencing shareholders directly.
A company may try to avert a hostile takeover through several means. One commonly used defense involves selling off the company’s most attractive asset to make the acquisition less desirable. With a golden parachute defense, the target company puts in place significant benefits packages to be delivered to top managers in the event of their termination after a merger, thus discouraging would-be acquirers from taking on the associated high costs.
Named after the popular video game, the Pac-Man defense originated in the 1980s. In this strategy, the target company turns around and attempts to acquire the would-be acquirer by any available means. The target may also try to find a “white knight,” a friendly company that will acquire it and retain current management.
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