What if I say no to a hostile acquisition?

Submitting to a hostile acquisition can be tempting due to high offers and lagging profits. However, some business owners in New York may be reluctant to agree to such acquisitions due to the ultimate loss of control over an enterprise. If you are facing a similar decision, you may be curious as to the consequences of denying or defending against a hostile takeover bid.

The New York Times offers some insight into companies that have fought off hostile bids in an attempt to provide shareholders with greater profits. A report shows that in many cases those companies that were successful in denying bids ultimately did not deliver on their promise to increase investor returns. This has much to do with the products a company offers and how much of a particular market your company lays claim to. Accordingly, companies that offer products or services that can’t easily be provided by competitors have the best chance of turning down a bid victoriously.

This was the case for a genetic technology company, which turned down an offer in the billions and ultimately went on to oversell their competition by 247 percent. Their success was attributed to the company’s unique product line, as well as the fact that it was deemed to be undervalued by the company attempting to make the acquisition.

However, you should be aware that this level of success is not the standard. Of the other companies surveyed, it’s projected that the majority should have taken the initial offers to sell. The creation of new revenue over time can be difficult, especially when management is struggling in the first place. 

No Comments

Leave a comment
Comment Information

Hear From Our Clients

Mr. Skolnik and Mr. Gaboury have represented me on multiple cases over the past two years. They are dependable, knowledgeable, and professional. They provided high quality legal guidance for my small business during a difficult time and brought me a peace of mind. I highly recommend Cox Padmore Skolnik & Shakarchy as your legal business representative. -Anonymous

Read More Reviews

Contact Us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Tap To Request An Exploratory Consultation

New York Office
630 Third Avenue
23rd Floor
New York, NY 10017

Phone: 646-355-1648
New York Law Office Map

Great Neck Office
98 Cutter Mill Road
Suite 310N
Great Neck, NY 11021

Phone: 646-355-1648
Great Neck Law Office Map

Hackensack Office
27 Warren Street
Suite 304
Hackensack, NJ 07601

Phone: 646-355-1648
Hackensack Law Office Map

Denver Office
1060 Humboldt Street
Denver, CO 80218

Phone: 646-355-1648
Denver Law Office Map