by T.Bags July 30, 2008
Get the Rectal Raider mug.(FINANCE) someone like Carl Icahn or Victor Posner; a manager of a PE fund or takeover vehicle (e.g., T. Boone Pickens with Mesa Petroleum) who organizes hostile takeovers of undervalued corporations.
WHY THEY'RE BAD
Corporate raiders insist they're looking out for the shareholder by forcing the managers to focus on increasing the value of the firm. If a company's share prices are high, it supposedly reflects well on the management of the firm; if the prices are low, the shareholders presumably would benefit from the takeover battle and subsequent change of management.
The flaw in this argument is (a) shareholders are not the only stakeholders in the corporation; workers, neighbors, and consumers also have interests that deserve protection; and (b), the impact of the corporate raider on FUTURE shareholders is inherently damaging over the long run because the targeted corporation's share prices are driven to a higher baseline anyway. After the takever battle between the raider and management, FUTURE buyers of the stock pay a higher price but are stuck with stagnant share prices because further increases don't make economic sense.
If the leveraged buyout succeeds, the company is saddled with debt in excess of its book value, which imposes an extreme burden; if it fails (greenmail), then company is still saddled with immense debt.
WHY THEY'RE BAD
Corporate raiders insist they're looking out for the shareholder by forcing the managers to focus on increasing the value of the firm. If a company's share prices are high, it supposedly reflects well on the management of the firm; if the prices are low, the shareholders presumably would benefit from the takeover battle and subsequent change of management.
The flaw in this argument is (a) shareholders are not the only stakeholders in the corporation; workers, neighbors, and consumers also have interests that deserve protection; and (b), the impact of the corporate raider on FUTURE shareholders is inherently damaging over the long run because the targeted corporation's share prices are driven to a higher baseline anyway. After the takever battle between the raider and management, FUTURE buyers of the stock pay a higher price but are stuck with stagnant share prices because further increases don't make economic sense.
If the leveraged buyout succeeds, the company is saddled with debt in excess of its book value, which imposes an extreme burden; if it fails (greenmail), then company is still saddled with immense debt.
Usually a corporate raider makes his killing by risking (and mostly losing) the money of other people.
He usually quotes Ayn Rand bromides about his adversaries being moochers and wreckers, but he destroys the livelihood of thousands, and he makes his fortune through ambush.
He usually quotes Ayn Rand bromides about his adversaries being moochers and wreckers, but he destroys the livelihood of thousands, and he makes his fortune through ambush.
by Sorry, the good guys lost September 4, 2010
Get the corporate raider mug.Related Words
Ramde
• ramdeen
• Ramdem
• Ramdemic
• Ramdeo
• Ramdev
• Ramdev (verb)
• raiden
• Raider
• Raider Hater
a person that is part of a group of Radekals, that are assisting children and families with their challenging journey of living with cancer. @Radekalsagainstcancer
Check us out on Facebook!
Check us out on Facebook!
I am a member of Radekals Against Cancer and am here to help in any way I can through your journey of living with cancer.
by radekalsagainstcancer-angel October 4, 2020
Get the Radekal mug.by kianakaslana420 January 24, 2022
Get the raiden mei mug.by dicebot July 18, 2022
Get the ralde mug.A Character From Genshin Impact She's The Electro Archon And The Leader Of Inazuma And The One. That Killed Orobashi, Thunderbird, Kazuha's Friend, Signora, Makoto/Baal's Sister, and Scaramouche's Mother/Creator.
Person 1: Have You Heard About Raiden Ei From Genshin Impact?
Person 2: Yea She's The Electro Archon And The One Who Killed Kazuha's Friend.
Person 2: Yea She's The Electro Archon And The One Who Killed Kazuha's Friend.
by Staticxzxcx October 2, 2022
Get the Raiden EI mug.A significant other who gets ahold of your cell phone to check your text messages. Usually causing a fight after seeing who has been texting you.
Dave: I have to delete all these messages from Sarah!
Jon: Why?
Dave: My girl is an Inbox Raider! I know she will start a fight.
Jon: Why?
Dave: My girl is an Inbox Raider! I know she will start a fight.
by Skientz January 28, 2009
Get the Inbox Raider mug.