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As corporations continue to hoard cash and the capital markets heat up, it is imperative that organizations establish and implement corporate hostile takeover defenses and build organizational resilience. (1)  By definition, a corporate hostile takeover is an acquisition of a firm despite resistance by the target firm's management and board of directors. (2) 
 
According to Thomson Reuters data, nonfinancial companies have cash and short-term investments worth approximately $1.88 trillion in Asia, $1.3 trillion in the United States and $1.17 trillion in Europe.

The aforementioned figures represent a 20-year high in terms of total cash and short term investments relative to total assets. (3)

The recent initial public offering of Nielson Ratings is a testament to the market's appetite for capital market transactions. Nielson Ratings is the largest offering since General Motor's initial public offering, which took place in November of 2010. (4)

 

The current market is ripe for corporate hostile takeovers, which poises the question: is your organization prepared to defend a hostile takeover and/or manage the adverse consequences of such an acquisition?