Corporate raider
A corporate raider , also known as corporate looter, is a financial investor who acquires a majority stake in mostly listed companies in order to then either sell them on at a profit or smash them, i.e. to sell unprofitable company divisions and, if necessary, to liquidate them. Corporate raiders are also referred to as grasshoppers in the German media by their critics .
As an alternative to a full takeover of the company, the investor's strategy is often to put public pressure on the management after acquiring a minority stake . This can then lead to the resignation of the management team or to the implementation of the required corporate strategy, at least in part.
If the individual parts of a company have a higher value than the whole, if the company is broken up, a profit can be realized through the release of liquid funds or through the sale of financial investments and real estate, but also investments and property rights (brands, patents).
Well-known corporate raiders
Corporate raiders in fiction
- In the 1987 film Wall Street , Michael Douglas plays a corporate raider named Gordon Gekko . The break-up of an aviation company is the main conflict between the main characters Gordon Gekko and Bud Fox (played by Charlie Sheen ).
- The main character Edward Lewis in the film Pretty Woman (1990) tries to take over the company "Morse Industries". In doing so, he avails himself of political influence. After falling in love with Vivian and becoming more thoughtful, at the end of the film he decides to create something instead of just destroying it. He therefore plans not to break up the company, but to acquire new orders.
- "Larry the Liquidator" is the main character in the feature film Other People's Money (1991). Danny DeVito plays Larry, who wants to smash the traditional company "New England Wire and Cable". The daughter of the company founder, with whom he fell in love, persuades him to invest in new products after the hostile takeover and to save the company after all.