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By Leonard Gotshalk
 Larry Gotshalk, a former NFL player for the Atlanta
Falcons, oversees operations as the president of
Gotshalk Enterprises. Larry Gotshalk’s main areas of
expertise include private equity transactions, and
mergers and acquisitions.
Mergers and acquisitions (M&As) are strategies used
by companies when a company merges its operations
with another organization, or acquires another
business to enhance its financial standing. A business
takeover is a type of acquisition whereby a firm
submits a bid for another company. If the acquiring
company is successful, it makes an offer for the
outstanding stock of the acquired firm.
 However, not all of these kinds of transactions
are friendly. For example, a hostile takeover
is made toward a firm that is resistant to the
attempt. In order to prevent the takeover, the
target firm may respond with a method known
as leveraged recapitalization. The anti-
takeover measure entails the sale of equity
and acquisition of additional debt, thereby
making the targeted firm a less attractive
investment and entity.

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Leveraged Recapitalization - One Way Companies Resist Takeover Bids

  • 2.  Larry Gotshalk, a former NFL player for the Atlanta Falcons, oversees operations as the president of Gotshalk Enterprises. Larry Gotshalk’s main areas of expertise include private equity transactions, and mergers and acquisitions. Mergers and acquisitions (M&As) are strategies used by companies when a company merges its operations with another organization, or acquires another business to enhance its financial standing. A business takeover is a type of acquisition whereby a firm submits a bid for another company. If the acquiring company is successful, it makes an offer for the outstanding stock of the acquired firm.
  • 3.  However, not all of these kinds of transactions are friendly. For example, a hostile takeover is made toward a firm that is resistant to the attempt. In order to prevent the takeover, the target firm may respond with a method known as leveraged recapitalization. The anti- takeover measure entails the sale of equity and acquisition of additional debt, thereby making the targeted firm a less attractive investment and entity.