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  1. #1

    Taking over a company that doesn't have publicly traded stock?

    Anyone have any info on doing this? There's a large website I have my eye on that is being mismanaged and definitely not being used up to it's full potential. I could turn it into one serious powerhouse.. build a small team of developers, a proper load balanced server system, and do better than they're doing. They got an ad on MTV, but only one, once. Not sure how much they're bringing in.

    It doesn't hurt that I don't care for the current owners and their associates at all. Guess I'd better look for a business lawyer who will help me craft a way to wrench control from of their hands, possibly through a few seperate 'angel investors' who are fronts for me in order to get a majority of control. Then I could immediately a) pay all money invested back to myself and pay off any loans incurred in the getting of it and b) asset strip the company of anything extraneous for an initial profit burst and then c) do it my way.

    Thoughts?

    Edit: It's NOT a hosting company.
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  2. #2
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    Re: Taking over a company that doesn't have publicly traded stock?

    Originally posted by Muzzleflash
    Edit: It's NOT a hosting company.
    Is it publicly traded? If it's private you may be able to buy all the stock you want through all the shills you'd like but not obtain a single voting right. If the company makes no money neither do the stockholders. If you don't know the class of stocks involved, you simply lack the information needed to take over a company. Unlike a public corporation, a private corporation (IIRC) doesn't need to disclose that sort of information.
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  3. #3
    I'm not sure if they use stock, which is why I was thinking having the shills buy "percentages" or something like that. I'm going to float an investor inquiry through an alias shortly and see what info I can dig up.
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  4. #4
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    hostile take over...how lovely
    All life is an experiment. The more experiments you make the better.

  5. #5
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    Why don't you just make the owner/owners a decent offer? Its easier and they might just decide to cash out. Since its not publicly traded there is no way of just taking over. Even if there are multiple shareholders, since its a private company they can have a policy where each stock purchase or sell must be approved by the majority.

    My guess is that it is probably owned by just one or two owners.

  6. #6
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    Originally posted by Lord
    hostile take over...how lovely
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  7. #7
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    Re: Taking over a company that doesn't have publicly traded stock?

    Originally posted by Muzzleflash
    . . . Guess I'd better look for a business lawyer who will help me craft a way to wrench control from of their hands, possibly through a few seperate 'angel investors' who are fronts for me in order to get a majority of control.
    Originally posted by E_man3
    Why don't you just make the owner/owners a decent offer? Its easier and they might just decide to cash out.

    Yep, swimming with the current is always better than against the current.

    If the current owners don't want to sell, then you're left with scant few options, if you still desire ownership. Maybe use those Angel investors and build your own company?
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  8. #8
    I doubt he'll be sensible and let me buy it. Angel investors would just be a front for me, I'm never going to use capital other than my own because karma is a b.. bad thing.

    I'd like to grab it in a way that lets me refund myself most of the money, that is also legal.
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  9. #9
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    Originally posted by Muzzleflash
    I doubt he'll be sensible and let me buy it. Angel investors would just be a front for me, I'm never going to use capital other than my own because karma is a b.. bad thing.

    I'd like to grab it in a way that lets me refund myself most of the money, that is also legal.
    Actually, it is illegal for you to purchase a company through 3rd party firms that are acting on your behalf. Without proper disclosure that you are behind it all.

    A hostile takeover is a hostile takeover, but not covert.

  10. #10
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    How is it bad karma to let someone invest in your business, yet you don't have a problem with using shills or otherwise attempting to fraudulently wrest control of a company for yourself? I'm sure that'll be good karma!

  11. #11
    Bad Karma = things come around, even if you never actually act on the impulse or plan, so I might as well avoid any chances of that happening.

    Actually, it is illegal for you to purchase a company through 3rd party firms that are acting on your behalf. Without proper disclosure that you are behind it all.
    Gotcha. That's what I needed to know. How about buying just the website off of the company in exchange for 600% of the website's net profits for a year?

    I'd do some deal like that except their sites aren't very good and this is the best one they have and I doubt they're going to want to just give it up, even though they do an absolutely craptacular job with it. I just want to rescue it and take it to the levels it belongs.
    Last edited by Muzzleflash; 07-07-2005 at 01:36 PM.
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