Sunday, January 30, 2011

What is the difference between an acquisition and a takeover?

There is no tangible difference between an acquisition and a takeover; both words can be used interchangeably - the only difference is that each word carries a slightly different connotation. Typically, takeover is used to reference a hostile takeover where the company being acquired is resisting. In contrast, acquisition is frequently used to describe more friendly acquisitions, or used in conjunction with the word merger, where both companies are willing to join together.
An acquisition or takeover occurs when one company purchases another. Companies perform acquisitions for various reasons: they may be seeking to achieve economies of scale, greater market share, increased synergy, cost reductions or for many other reasons. The acquiring company would usually proceed with the corporate action by offering to purchase the shares from the shareholders of the target company. Often, a cash offer is made but sometimes the acquiring company may offer to trade its own shares in exchange for the target company's shares. Also, the difference between mergers and takeovers/acquisitions are that mergers involve two companies of roughly equal size that have decided to combine together to take advantage of expected advantages of a being larger company.

Free-Float Methodology

What Does Free-Float Methodology Mean?


A method by which the market capitalization of an index's underlying companies is calculated. Free-float methodology market capitalization is calculated by taking the equity's price and multiplying it by the number of shares readily available in the market. Instead of using all of the shares outstanding like the full-market capitalization method, the free-float method excludes locked-in shares such as those held by promoters and governments.

Calculated as:

Friday, January 7, 2011

Five Best Business Books to Read for Your Career in 2011

Will 2011 bring a huge market boom or another economic catastrophe? Depends on who you ask. Still, there is no bear market for career advice and it almost always pays dividends. Here are some new offerings that will serve you well in the New Year.

1. Getting More: How to Negotiate to Achieve Your Goals in the Real World, by Stuart Diamond ($26)

Diamond is a chronic overachiever. Harvard law degree. Wharton MBA. Pulitzer Prize via the New York Times. CEO of a bunch of companies. And currently a professor at Wharton. In other words, he knows a lot about "getting more."
Diamond's tome advises to forget about power and probabilities in a negotiation and focus on who is sitting across the table -- their emotions and "the pictures" in their heads. He also makes the case for occasionally losing, which, honestly, doesn't seem like his strong suit.

2. The Soul of Leadership: Unlocking Your Potential for Greatness, by Deepak Chopra ($19.99)

Chopra, the author of "How to Know God" and "The Path to Love" probably doesn't carry as much clout in the business world as the Sage of Omaha, but he's has been teaching CEOs for some time. The core of his counseling here is of the know thyself variety, which is never bad advice.
Chopra writes: "At the deepest level, a leader is the symbolic soul of a group." Meditate on that.

3. Being the Boss: The 3 Imperatives for Becoming a Great Leader, by Linda A. Hill, Kent L. Lineback ($25.95)

Read a book...like a boss.
Seriously though, the savvy folks at Harvard Business School (whose press unit published this offering) probably know more than most about teaching people how to lead. Hill, an HBS professor, and Lineback, a writer and near-constant HBS collaborator, break leadership down into three fronts: managing yourself, managing a network and managing a team.

4. The Personal MBA, by Josh Kaufman ($27.95)

Kaufman, a former middle manager at Proctor & Gamble, has built a following teaching people how to do an end-run around the ivory tower. His website, personalmba.com, has condensed business books and broken b-school topics into digestible pieces since 2005.
The book version of Kaufman's schtick also includes a long list of sources to plumb for more information. At $28, it might be worth a shot.

5. The Futures: The Rise of the Speculator and the Origins of the World's Biggest Markets, by Emily Lambert ($26.95)
Lambert, who writes about finance and trading at Forbes magazine, provides a historic vista of the Chicago trading pits, from its feedlot roots to its feverish, tech-juiced present. She also makes the case for speculators.
As Uncle Sam goes about rewriting the rules on how derivatives are bought and sold, those attached to the business would do well to look back.

Buzz Words to Avoid in Your LinkedIn Profile and on Your Resume

If you're like the majority of LinkedIn users, the words "motivated," "team player," and "innovative" probably appear in your profile. According to a report put out by the business social networking site, these are some of the most-used terms on the profiles of LinkedIn's 85 million users.

These terms are so overused and general they may have lost their impact, said DJ Patil, LinkedIn's chief data scientist and the lead on the report.
LinkedIn's analytics team drew up a list of 40 common professional buzzwords and then ranked them in order of frequency on member profiles.
"These are empty words," said Nicole Williams, a career coach and author of Earn What You're Worth. "They're not words that quantify any type of results. If you have extensive experience, who cares? Everyone has extensive experience."
Williams recommended scrubbing these terms from both your LinkedIn profile and your resume.:
1. Extensive experience
2. Innovative
3. Motivated
4. Results-oriented
5. Dynamic
6. Proven track record
7. Team player
8. Fast-paced
9. Problem solver
10. Entrepreneurial
So how do you describe yourself with adjectives that detail your positive qualities without using worn-out, ineffective terms?
Be more specific, said Williams.
Instead of writing "extensive experience," write that you have "twenty years' experience working with ultra high net worth clients." Or highlight your restructuring experience by listing the deals you've worked on and what you specifically did to engineer them.
Aside from the top-ten most used terms on LinkedIn, there are dozens of clichés to stay away from. Here is the list of 40 overused buzz words that the LinkedIn team used to conduct the study:
1. Best-in-Breed
2. Best-in-Class
3. Bottom-Line Oriented
4. Client Focused
5. Creative Thinker
6. Cutting Edge
7. Detail Oriented
8. Driven Professional
9. Dynamic
10. Entrepreneurial
11. Evangelist
12. Extensive Experience
13. Fast Paced
14. Go-To Person
15. Goal Oriented
16. Guru
17. Highly Skilled
18. Innovative
19. Motivated
20. Multi-Tasker
21. Out-of-the-Box
22. Perfectionist
23. Proactive
24. Problem Solver
25. Proven Track Record
26. Quality Driven
27. Quick Learner
28. Results-Oriented
29. Road Warrior
30. Seasoned Professional
31. Self-Starter
32. Skill Set
33. Strategic Thinker
34. Strong Work Ethic
35. Team Player
36. Tiger Team
37. Trustworthy
38. Value Add (Added)
39. Works Well Under Pressure
40. Works Well With Others

Saturday, January 1, 2011

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