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Wednesday, February 07, 2007

THE LANGUAGE OF THE CORPORATE WARRIORS

In the complicated world of corporate dynamics, “Finance” is the language which the corporate warriors use to win over enemies and protect themselves from stronger adversaries. Finance is also the language which often dictates the strategy of an organization and hence its direction. “Finance” is abundant of such weapons which are used extensively in both defending and attacking. It is sometimes surprising to realize how such weapons can be strategically used to define the future of an organization. Books have been written on this issue and movies have been screened.
Just think of phrases like friendly takeovers, hostile takeovers, reverse takeovers, shark repellent, white knight, black knight, gray knight, leveraged recapitalization, white square, poison pill, golden parachute, golden handshake, winner’s curse etc…..and we can get an idea of the strategic games that follows the rule of finance.
Each of these phrases is a method employed by an organization either to attack another organization or to defend itself from another organization.

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