FINANCIAL HOUSEKEEPING | Avoid marketing intrusions
It’s easy to avoid telephone solicitations, and a bit hard to eliminate junk mail, but consumers who are tired of both should take steps to eliminate them.
To stop telephone solicitations for five years, go to www.donotcall.gov or call 888-382-1222 toll-free from the number you want to restrict access to. You can register home phones and cellphones.
For junk mail, the Direct Marketing Association maintains a list of consumers who want out of solicitations, but it works only for merchants that are rule-abiding members of the group. There’s a $1 fee to opt out of the list; write to the Mail Preference Service at P.O. Box 643, Carmel, NY 10512. For faster service, set your Web browser to www.the-dma.org/ consumers/offmailinglist.html and look for the form online.
SHORT COURSE | Leveraged buyout
A corporate takeover using borrowed funds is known as a leveraged buyout, or LBO. Most often, the assets of the target firm are used to secure loans that help the acquiring company buy the stock.
In most LBOs, shareholders are paid a premium over current market value for their shares.
A leveraged buyout enables takeovers with little upfront money, one reason why the technique is popular with managers looking to take their current employer private. But the high level of debt can significantly increase the risk of the deal to both owners and debtholders, as the loans typically are repaid from the target firm’s cash flow. Any decline in business can threaten the company’s ability to meet its new debts.
