The company’s board comes up with a hotshot stranger whose mission is to bring the firm into the modern age, get earnings up where they ought to be, and be rewarded with some really golden options and bonuses. With the company’s financials, getting cash is no problem and this guy knows what to do with it—buy into the really going industries and into the markets of the moment.
Who could resist? As soon as the news about the business strategy breaks, the share value increases and there’s a lot of excitement about the firm, especially if the new CEO has a track record in turnarounds. Sounds like a sure thing; what could go wrong? Plenty!