Investors should look for companies where: • management is not
near retirement age; • management has gained experience at other companies in the same or similar industries; • the company founder is still on hand; • management owns stock in the company.
The following may be true of a potential takeover: • the company has fewer than 50 million shares outstanding; • management is dominated by persons
near retirement age; • management's record on innovations and improving returns has been poor; • the company owns assets whose market values are potentially higher than those shown on the balance sheet; • outside
investors have been steadily buying the stock.