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Saturday, February 1, 2020
Health Care Administration Ethics Movie Review Example | Topics and Well Written Essays - 750 words
Health Care Administration Ethics - Movie Review Example On this basis, he was not an expert of a leverage buyout. Initiating a merger with the company would have proved successful, and on this note, it was surprising for him to engage in a buyout. Another issue is that he tried to remodel RJR Nabisco, which was a company that consisted of a diverse group of companies. He was not successful in this attempt. However, his decision to buy RJR Nabisco experienced some challenges with the emergence of another company, referred to as KKR. These are experts in LBO buyouts, and this result in a series of negotiations and exchanges, leading to the failure of the buyout. One of the opinions raised by the author is that leveraged buyouts have to be conducted by people experienced in the same. This is because the author is able to depict in the movie that Ross Johnson was not qualified enough to engage in a leveraged buyout because he was an expert of a buyout, and not a merger (Thomas, 74). On this basis, the KKR Company was better placed to handle the buyout, as opposed to the firm employed by Ross Johnson that is Shearson Lehmann. Furthermore, the author is against leverage buyout, and this is because it uses the companyââ¬â¢s debts and equity as collateral in purchasing a given company. In the view of the author, this is unethical business practice. Furthermore, the author identifies the greed and corrupt activities of Wall Street managers, whose ambition is driven by making more money. This was the case of Ross Johnson, as well as the managers of KKR Company. They were engaged in a series of price wars, and negotiations, without involving the shareholders, or even catering for the interests of the shareholders (Russell, 17). These opinions by the author are valid, and they are even reflected in the real life situation of the business world. For instance, Lehman Brothers was an equity investment company that collapsed in
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