A month ago I asked a traditional MBA grad and experienced businessperson for his insight into what was driving the rash of hedge-fund takeovers of business. Beyond the rationale of avoiding Sarbanes-Oxley compliance he suggested 3 major reasons a company could get a profit-boost under new ownership: 1) Lever-up: increase your leverage by borrowing money. [...]
Archive for October, 2006
When money is power
Posted in Along the Way on October 12, 2006 | Leave a Comment »
Market Pricing Wisdom
Posted in Along the Way on October 12, 2006 | Leave a Comment »
Most people know the basic theory of capitalism: supply and demand. They can name Adam Smith, maybe have heard of the invisible hand. But it has long frustrated me that most people seem to believe that the real world is somehow that simple. Competition will drive prices down. But wait, the theory is actually that [...]
