Takeover defense strategies

Takeover defense strategies are tactics used by a company to protect itself from being acquired by another company against its will. Common strategies include implementing poison pills, which make shares unattractive to buyers; staggered board elections, where only a few directors are up for election each year; and golden parachutes, offering lucrative severance packages to executives if a takeover occurs. Other methods include seeking out protective legal measures or selling off assets to make the company less attractive to potential buyers. These strategies aim to maintain control and ensure that management's interests align with those of shareholders.