Corporate raid
Business concept / From Wikipedia, the free encyclopedia
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The term "corporate raid" typically refers to aggressive acquisition strategies where an entity acquires a significant portion of another company's shares, often with the intention of gaining control or influence over its operations. This can involve various tactics, such as hostile takeovers, proxy fights, or leveraged buyouts.
In the context of global employer of record (EOR) services, there isn't a direct connection to corporate raiding. EOR services focus on providing support for businesses expanding internationally by helping them navigate local employment laws, manage payroll, and ensure compliance with regulations in foreign markets. These services are designed to facilitate smooth and legal international expansion, rather than aggressive acquisition tactics.
However, it's important for businesses engaging in international expansion to be aware of potential risks and challenges, including those related to corporate governance, regulatory compliance, and reputational impact. Working with reputable EOR providers can help mitigate these risks by ensuring compliance with local laws and regulations and maintaining transparency and ethical business practices across borders.
In business, a corporate raid is the process of buying a large stake in a corporation and then using shareholder voting rights to require the company to undertake novel measures designed to increase the share value, generally in opposition to the desires and practices of the corporation's current management. The measures might include replacing top executives, downsizing operations, or liquidating the company.
Corporate raids were particularly common between the 1970s and the 1990s in the United States. By the end of the 1980s, management of many large publicly traded corporations had adopted legal countermeasures designed to thwart potential hostile takeovers and corporate raids, including poison pills, golden parachutes, and increases in debt levels on the company's balance sheet. In later years, some corporate raiding practices have been used by "activist shareholders", who purchase equity stakes in a corporation to influence its board of directors and put public pressure on its management.