Private equity firms buying publicly traded businesses an Example of the Topic Economics Essays by

The growing trend: Private equity firms buying publicly traded businesses Purchases of publicly traded businesses by private equity firms: Private equity markets are witnessing a flurry of activity and growing at a phenomenal rate because of large deals. On the whole, private-equity firms made a spending close to $50 billion during 2006, which is five times what they spend for instance in the U.S. healthcare company purchase deals in 2005, in the opinion of Dealogic- a company that follows global M&A activities. To continue with the example, the U.S. healthcare industry that is worth $1.8 trillion or more than $1 of every $7 spent in the nation's economy is gearing towards for investment from Private equity firms, in the opinion of industry analysts and firms involved. For instance the $32.7 billion deal of hospital operator HCA Inc. led by private-equity firms Bain Capital LLC, Kohlberg Kravis Roberts & Co and Merrill Lynch Global Private Equity which was agreed to by the shareholders during November 2006. (Japsen, 4) Need essay sample on "The growing trend: Private equity firms buying publicly traded businesses" topic? We will write a custom essay sample specifically for you Proceed University Students Often Tell EssayLab professionals: Who wants to write paper for me? Specialists propose: Get Help In Writing An Essay Buy Essays Online Paper Writers For Hire Best Essay Writing Service Best Essay Writing Service The main drivers of these activities are due to the inherent size of the healthcare industry and its fragmented nature of functioning throughout the nation due to which it appears natural that investments by publicly traded companies are unable to tackle the growing U.S. medical-care system on its own. In the opinion of private-equity firms, publicly traded companies such as HCA are drawn towards private ownership in part since it eases them of the pressure of reporting regarding their earnings on a regular basis to the Wall Street and the public. (Japsen, 4) Who is going to be impacted and how: Private-equity firms are possibly the newest phenomena on the Wall Street at the moment, equipped with the financial muscle to buy the publicly traded companies. The impact of this has been in more ways than one. The reach of the private equity companies into the financial markets is poised to change the structure of the stock market by way of placing a rising number of big-ticket companies beyond the reach of small and average investors besides placing several retirees pension and retirement funds into increased speculative investments compared to earlier. Basically this a refurbished form of the leveraged buyout -- LBOs firms of the 1980s under which these firms enter into deals with companies that are undervalued, put them into shape and dispose them following earning of a quick profits in a very short time. Their secret has all along been the efficient use of debt that is normally close to 70 cents of every dollar invested. As they stack debt on the companies which they enter int o deals, private equity firms free up their own money, thereby permitting them to make more investments and maximize their potential returns. (Krantz, 10) The amount invested in private equity touched $139.6 billion during 2005 which was double the amount compared to 2003, according to Citigroup authorities. This figure is more than $135.8 billion which were invested in stock mutual funds in 2005. And because private equity firms are sitting on huge stockpile of cash, they are assuming a more crucial and developing financial strength currently. For instance, Jack Welch, former CEO, GE, Robert Johnson, founder of Black Entertainment Television and U2's Bono, have taken the private equity route. During 2006, some of the large U.S. players gobbled by private equity firms included Neiman Marcus which was bought for $4.9 billion, Toys R Us for $$6.6 billion and Computer Services firm SunGuard Systems for $11.3 billion. However the much talked about deal that was the biggest private equity deal in recent years was the acquisition of Hertz Car Rental Company for $15 billion by a group of firms. In a sharp departure from what was happening dur ing the 1980s in which the companies were bought and rebuild, the current trend has been that the private equity firms is putting qualified management groups who are capable of raking in more profits from less performing companies. (Krantz, 10) Will some benefit while others lose? It is observed that only big names have been benefited by the Private Equity deals. A slew of giant companies like Clear Channel Communication, Cable Vision, Readers Digest, SunGuard Data Systems, MGM and the hospital major HCA have been bought out through private equity deals. There has been no respite from this with the Blackstone Group disclosing about its intention to buy Equity Office Properties Trust-the nation's largest owner of office buildings, in a deal that was unprecedented. However as the number and size of the private equity deals have risen, eyebrows have been raised regarding whether the leveraged buyout market which they are fueling might eventually leave some companies and shareholders shattered. The Securities and Exchange Commission is also probing into accusations of insider trading and multi-million dollar fraud. (The New Face of Capitalism) There have been instances where shareholders have filed lawsuits to put an end to some of the deals, like the buyout of hospital chain HCA. Astoundingly huge payouts in the form of dividend payouts to private equity buyers from companies such as Hertz have often made the firms appear to be hungry. In the past, private equity firms remained in a secluded corner of the financial world, satisfied with buying, building and running strong companies. A lot continue to do just that. However the fact that made them popular during the 1980s was that there were more and more of leveraged buyouts wherein the groups added huge borrowings to their own cash primarily due to the liberal debt laws which safeguarded profits from the tax authorities. (The New Face of Capitalism) Happenings of recent years have made apparent that satisfaction for both countries as well as individual companies can be risky in the current global economy. The present encouraging outlook for US can be upturned rapidly. Given the increased competition within the companies and industries, winners and losers are not decided once. Recent researches have depicted that 50% of America's economic growth comes from firms which were non-existent about 10 years ago. Not do these high-growth firms create jobs, they also are less comparatively likely to fail, build substantially more wealth in the form of profits, sales and value, pay higher wages, give higher employee benefits and make more investment in research and development. Besides, high growth firms inspire growth and the development of other non-high-growth firms. (Buss, 53) What is prompting this activity? The pace of activity in private equity deals has been so hectic that even the corporate giants Texas Instruments, Dell Computers and Home Depot could be the next targets of private equity firms. The main drivers of this activity is the manner in which the management strategies and methodologies equip private equity firms to show impressive results which is beyond the reach of others. By observing the companies owned by major private-equity firms and discussing with the executives who manage them, it is found that there is a unique procedure of management which is strikingly distinct from what happens in majority of the publicly traded companies or majority of the private companies that are traditionally managed. The differences start at the most basic level with new objectives. (Colvin; Charan, 18) Private equity firms desire to enter into deals with companies for their portfolio, rebuild them and dispose them off within a timeframe of 3 to 5 years. The ultimate buyer might be another company in the portfolio company's industry, a new private-equity firm or the public, through an Initial Public Offering -- IPO. The period of holding is sometimes less than a year to as long as ten years. Nevertheless, the ultimate objective from the day the deal is inked is to sell the company at a profit. The definition and the underlying meaning of 'Pay' is altogether different concept in private equity owned companies. It is observed that whereas a lot of public companies express regarding matching the pay of executives with performance, they normally award stock options and limited stock over and above greater pay packages, thereby giving the executives a great deal to gain, and little to lose. (Colvin; Charan, 20) Moreover, in case of big companies, these options show the wealth of the entire company and not the particular business a manager who is in charge of. This is in sharp contrast in case of private equity firms where the mode of functioning is much more serious. It is not just that a greater proportion of the executive's pay is linked to his business performance, but top managers might also be needed to contribute a sizeable chunk of their own money into the business deal. This is because putting own money builds an ownership frame of mind instead of a corporate mentality. The resulting difference shapes the manner in which one spends the money. Besides, one more thing that is prompting this activity is that people just attempt to put in more effort when their money is at stake. For instance, in the opinion of Pramod Bhasin of Genpact, an outsourcing company owned by GE, becoming owners makes one strive and put all-out effort to attain targets and look for newer areas where the busines s could be reached. (Colvin; Charan, 20) References Buss, Terry. F. Capital, Emerging High-Growth Firms and Public Policy: The Case Against Federal Intervention. Praeger. 2001. Colvin, Geoffrey; Charan, Ram. Private Equity, Private Lives. Fortune Magazine. 27 November, 2006. pp: 18-20 Japsen, Bruce. Private equity is shot in the arm for industry. Chicago Tribune. 30 December, 2006. pp: 4-5 Krantz, Matt. Private Equity Firms Spin Off Cash. USA Today.16 March, 2006. p. 10-11. Roane, Kit R. The New Face of Capitalism. US News and World Report. 26 November, 2006.

The Morality of Euthanasia essays

The Morality of Euthanasia essays In contemporary American society, a general topic for moral discussion is euthanasia, the act of painlessly ending the life of a person for reasons of mercy. This is usually done in cases in which the person is hopelessly sick or injured. Although by this definition euthanasia may clearly seem to be morally permissible, it is cause for much debate and controversy in todays American culture. In this essay, I will defend the view that euthanasia is almost always morally acceptable, exceptions being non-voluntary active euthanasia, (which will be defined shortly), or cases in which the patient has been suicidal before the diagnosis of a disease or a debilitating accident. Before beginning my arguments, I think it important to first discuss the different types of euthanasia. Voluntary active euthanasia is when the patient wishes to end their life, and this is done through such means as injecting them with a lethal dose of a drug, therefore dying of unnatural causes. Voluntary passive euthanasia occurs when the patient wishes to end their life, but death is caused naturally by removing a life-sustaining machine or by not starting treatment for a disease. Non-voluntary active euthanasia is simply active euthanasia in which the patient is unable to express their wishes and a loved one makes the decision for them. Non-voluntary passive euthanasia is passive euthanasia under the same circumstances as non-voluntary active euthanasia. (There also exists another form, involuntary euthanasia, which directly violates the patients wishes, which seems to simply be homicide; therefore I will not further discuss this issue). Another act that falls within the scope of euthanasia is Physician Assisted Suicide. This is when a physician provides the information, means, or supervision for the successful suicide of their patient at the patients request. Moving on to my argument supporting the morality of euthanasia, ...

Analysis Of The Reasons Of Democratization

Analysis Of The Reasons Of Democratization In general, the reasons of democratization shift in different countries. Samuel P. Huntington raises five main elements to explain his points of view. The author would like to examine how these five factors resulted in the democratization in South Korea and are the exclusive reasons. Besides, does China have difficulty to become a democratic country only because it lacks of these five conditions? Infection results: it means when the other countries start to call for the democracy, the countries nearby would be affected and the citizens would appeal to their government to reform and therefore forms the domino effect. For instance, the third wave in East Europe in 1990’s and the fourth wave democratization in North Africa in 2011. The collapse of the authoritarian government: when the current regime couldn’t provide the basic need of its people and maintain the order of the politics, civilians will call for the reform and even the revolution to rebuild the democratic reg ime. The collapse of USSR is one of the examples and we can see that due to its serious problem brought by the economic recession. The growth of economic system: the notion of the liberalism indicates that the boost in economic growth will create the richer middle-class which would ask for the opportunities of getting involved in politics. In this kind of situation, the social mobilization and the information will become faster to decrease the legitimacy of the authoritarian government. South Korea and Taiwan belong to this part. The choice of political leaders: one of the crucial keys come from the elites of the ruling classes, especially when the leaders become aware of the transition of the environment makes the democracy is the only cure to maintain the current regime. For instance, the former President of South Africa Frederik Willem de Klerk leaded South Africa to a democratic country. Influence of actors outside of the country: the impact of actions from foreign organizations or countries would construct the pressure to the autocratic regime. For example, the collapse of the Philippine of Marcos regime. The reasons for South Korea’s democratization The reasons for South Korea’s democratization are extensive and diversified. We can take our points of view from different angles including economic growth, social structure, political culture and the transition of history. The theory of Huntington elaborate the overall structure enables us to relate different events happened in South Korea to the factors of democratization. The author would like to use Huntington theory as the main stream to explain the reasons of democratization. We can general discover some of the elements of the theory of Huntington are the main reasons to give an impetus to the democratization but some are not. Economic growth is not necessary to become the direct element to democratization of South Korea Just like Huntington mentioned in his book of the third wave, â€Å" An overall correlation exists between the level of economic development and democracy have no level or pattern of economic development is in itself either necessary or sufficient to bring about democratization.†Ã‚   [ 1 ]   We can conclude from most of the third wave countries that the success of the democratization of third countries that there will be mass middle-class emerging before the formal democratization. This could be proved by the countries in the third wave are mostly the higher developing countries.   [ 2 ]   However, the GDP growth rate in South Korea in 1960 -1980’s is averagely 8.5-8.9%   [ 3 ]   , which is higher than lots of Latin American countries. But the time of democratization in South Korea was later than Latin American countries. This is explained by Huntington in his article in 1984 that he thought this is an exception.   [ 4 ]   To conclude, Huntington pointed out there might be two reasons; the first one is the tradition Confuci anism emphasize the structure of the social levels, authority, community, and loyalty which postponed the society’s requests of democracy, and the second reason is because the rapid economic growth happened in a relatively equal income distribution environment. However, when it reached the critical point in 1980’s, it forced South Korea to begin its democratization.   [ 5 ]

MARKETING - FINAL CHAPTER PROBLEMS Article Example | Topics and Well Written Essays - 1250 words

MARKETING - FINAL CHAPTER PROBLEMS - Article Example In this case, Eric (2010) showcases constructs of relationship marketing as it identifies with health care customers and practitioners. With regards to the website refreshing after every ten minutes to keep track of appointments, it is a strategy that aims at developing long-term, cost-effective link for a mutual benefit between the organization and the customer. While focusing on the relationship marketing, organizations shift their focus from individual transactions such as convincing a customer to make use of the clinic services, â€Å"to a long-term loyalty – identifying the institution as a regular health care provider† (Eric, 2010). Customers require high-quality services and retaining a customer requires strategy. Delayed, canceled, or unplanned appointment visits are areas that have, for a long time, been haunting customers and health care institutions as the result of these variables is loss of customers or flawed customer service. However, the invention of a s ervice that enables tracking, observation, and keeping of appointments adapts the contemporary notion of shifting from the individual transaction (patient visit, referral, and sale) to the establishment of a longer-term relationship. The refreshing website is a marketing tool that specifically addresses customer satisfaction, service quality, time and resource management, and accomplishment of customer retention (Eric, 2010). Question 2: Chapter 8 â€Å"I’ve sold products all my life and have been successful. Marketing a food product is no different from marketing a hotel, airline, or hospital.† The above point is naive in all aspects. Firstly, marketing is a process through which a seller of a product or provider of a service uses promotional means and integrated marketing communication to convince customers into buying or using a product or a service. As pointed by the above quotation, the term sold is past tense for sell and means the ability to complete a single tr ansaction by offering a product or service in exchange for money. The naivety of the above point starts with the confusion of selling and marketing. In addition, neither marketing nor selling is a skill (with regards to the question posed, the board expects understanding of selling and marketing concepts but the interviewee portrays selling as an event based on sheer luck) and neither can be measured through the consideration of periodic success. Moving on to the second part of the quotation; products differ from one another and comparing food products to hotels, airlines, or an hospital shows a high degree of naivety. Food products are mostly sold in food shops, restaurants, and/or grocery stores and capturing a market for these products depends on fewer variables than providing services in the health care sector (Berkowitz, 2010). Food products appeal to various people all the time and this industry does not necessarily require loyalty like the health care sector. Health care prod ucts depend on variables such as product positioning (drugs, machines), branding (machines, e.g. in radiology), and diffusion of innovation (rate of adoption of a product). Diffusion of innovation is determined by relative advantage (advantage of new product over existing ones), compatibility (compatibility with existing values and customs creates adoptability), complexity (affects adoption of products), divisibility (trial on a limited basis), and communicability (easy communication of benefits). Reflecting on the

See the dis Essay Example | Topics and Well Written Essays - 1000 words

See the dis - Essay Example What is more important is the content transferred and the copyrights attached to the content. Thus, if there has been a transfer of some content that has been protected by copy right, then this means of file sharing is considered to be illegal. On the other hand, if the content is not protected by copyright, then file sharing may or downloading may not be illegal. Thesis The main reason why unauthorized file sharing is illegal in most countries is that it is considered equitable to theft. Arguments However, sharing or downloading may not always classify as theft. The famous economist and noble prizewinner, F. A. Hayek explains how conventional property rights and copyrights are different in reference to their supply capacities. While it may not be possible for the supply of a material property to be unlimited, it may very likely be that an intangible object has an unlimited supply (Hayek, pp. 23-25). Consequently, because there is an unlimited supply of an intangible asset, accessing that object may not affect the availability of that object to anyone. This implies that theft, where one takes the object of possession away from the owner cannot materialize in case of the intangible asset because the owner would still posses the intangible object. Thus, in essence, unauthorized file transfer is not illegal. Karl Sigfrid, the author of the op-ed submission, who has been arguing in the favor of decriminalizing file sharing and downloading, has also argued along similar lines to support his stance. Another strong arguments that have often being used to support the imposition on copyrights and thus, to make file transfers illegal is that of the potential loss that the owner of the file or the programme might have when his files are transferred to people. Take the instance of a music composer who is at loss when his music files are transferred to others. However, at a closer look the transfer of such files does not bring about any loss to the owner because in the end the owner still has an access to his files at the same time when others do (Lemely, pp. 30-34). More importantly, many artists, musicians, and composer have noted how file sharing benefits them by providing a forum for displaying and publicizing their work. Despite these arguments, the practice of file transfer and downloading is illegal when the file is copyrighted. This is because the owners of the intellectual property (the files that are transferred) state that their intangible property is subject to the same protection as a tangible asset because that intellectual property has some value attached to it. In other words downloading files without the permission of the owner is the same as encroaching on a private property or stealing. Skeptics may argue against this notion by explaining how stealing causes a loss to an individual. On the other hand, the acquisition of the files via file sharing does not add up to the cost of the owner. Nor does it cause any form of a loss of value , so comparing intellectual property with a tangible possession is absurd. However, there needs to be a closer inspection of how the usage of the intellectual property without paying for it is a cost to the owner in terms of the loss of the potential monetary benefits that he/she may have been entitled to receive otherwise. Using that intellectual

Internet addiction Essay Example for Free

Internet addiction Essay Addiction pertains to a behavioral issue that is mainly characterized by an urge to consume a particular item or perform a specific activity repeatedly (Pies, 2009). Addiction is different from abuse, which is technically a less serious version of this behavioral problem. The act of repeatedly performing an action or consuming a specific substance is mainly influenced by external and internal factors. Addiction is largely influenced by the physiological and psychological effect that an individual achieves when he performs a specific action or consumes a particular item. It is also possible for social factors to affect an individual to repeatedly perform a specific action. The Internet is one of the latest networks that links people to the rest of the world by enabling them to communicate and gather information at the fastest and most efficient way to date (Collier, 2009). The accessibility of the Internet in almost every place in the community has resulted in its integration into various settings, including business offices, academic institutions and homes. Aside from communication and the transfer of data from one computer user to another, the Internet currently serves as the prime source for entertainment to the public. It is now possible to download music, videos and even literature with such ease and precision. Alongside the availability of this helpful technology, there are also a number of negative effects that are associated with Internet use. The human psyche has been influenced by the Internet, which in turn has resulted in an addiction that is similar to the repeated actions involved in drug or alcohol use. This consequence has affected not only the addicted individual himself, but also his immediate family and co-workers. To date, there is no official term that could be employed to designate this particular addiction to the Internet (Zboralski et al. , 2009). However, it is quite easy to describe the activities of this behavioral issue based on the actions of an individual, including the need to check certain websites continuously and spending an extended period of time in front of the computer. In addition, Internet addiction could also involve frequent and continuous participation in online games, email, chat or messenger sessions. Controversy regarding the actual designation of Internet addiction is currently under the scrutiny of psychologists and other analysts. According to Pies (2009), the psychological manifestations associated with Internet addiction are similar to the other types of addiction, including that of drug and alcohol dependency. However, the physiological relationship of Internet addiction to the human body still needs to be further examined. Pies (2009) suggested that there must be an underlying medical condition that pushes an individual to repeatedly use the Internet, yet this still has to be identified. It is still thus premature to call Internet addiction as a disease, with the current insufficient amount of information that has been gathered on these occurrences. In an attempt to determine the extent of Internet addiction in the general society, a number of investigators have attempted to examine the frequency of Internet use in relation to the purpose of its use. In a study conducted by Zboralski et al. 2009) among school-age children, it was observed that 25% of the study population was strongly dependent to the Internet, including primary school children. Another interesting observation is that children who did not have siblings or children who were experiencing family problems were more likely to be addicted to Internet use. It is also alarming to find out that Internet-dependent children showed a greater susceptibility to enact aggressive behavior, as well as succumb to anxiety and depression. Deprivation of Internet use among addicts also results in withdrawal symptoms, as well as the development of an anxious stance. There are also cases wherein Internet addicts experience nausea and sweating when they engage in excessive use of the Internet, otherwise called computer binges (Collier, 2009). It is also observed that some Internet addicts undergo hyperarousal during interaction on the Internet. Unfortunately, there is no mention of other physiological responses to these reports, such as changes in the blood pressure or the heart rate of any study participants. It is thus recommended that for the time being, anecdotal, case and clinical reports be compiled for future reference and review.

Oliver twist - I am going to analyze how Charles Dickens portrayed Essa

Oliver twist - I am going to analyze how Charles Dickens portrayed Oliver's life to show his audience the poverty, sickness and desperation that he saw around him ever since he was young. Oliver twist essay I am going to analyze how Charles Dickens portrayed Oliver's life to show his audience the poverty, sickness and desperation that he saw around him ever since he was young. The fictitious character Oliver twist was born into extreme poverty. As Dickens writes: 'It remained a matter of considerable doubt whether the child would survive to bear any name at all.' Charles Dickens had first hand experience of poverty; his parents were imprisoned for a year for being offenders of the poor laws- they hadn't enough money to support their family and got into debt, which they couldn't pay. So Charles spent most of his time walking around the dirty back streets of London, where he witnessed a great deal of poor people who had been reduced to criminals, prostitutes and beggars who lived surrounded by poverty, disease and abandoned children whose parents were either dead or not able to look after their offspring financially. The vast division in society of lower and upper classes influenced Dickens to write to tell other people what the conditions for the poor were really like. He had to be subtle; he didn't want to alienate his upper class audience. So he wrote a novel, revolving around memorable characters and places to entertain his audience. Dickens knew that people learnt more and were more willing to listen whilst being entertained, so he wrote history as entertainment. Dickens' audience consisted of two groups: the sub-literate who were the poor that attended his readings as they couldn't read, and the... ...e white waist coated gentleman was right or not, I should perhaps mar the interest of this narrative (supposing it to possess any at all), if I ventured to hint just yet, whether the life of Oliver Twist had this violent termination or no. Dickens was uncertain of who Oliver was going to turn out to be until the novel was well established. He was planning the story as he went along, writing each chapter separately instead of planning the whole novel. Overall, Oliver Twist is one of the great novels written with a desire to send a message out to people, and a message that changed people's perspectives of poor life in those times, which I believe is the reason that it is remembered so well to this day. From reading this book I have learnt about the circumstances of those times in a way not possible from reading a textbook. I saw it through a child's eyes.