Olympus - Law Deliverable 2

Chose the companies cautiously looking at not only

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chose the companies cautiously, looking at not only past financial charts but also legal history. We felt comfortable with most of the companies we chose, because we felt that they were not susceptible to forcible legal issues that could swiftly harm the price and value of the stock. One such company we considered but had not selected was Olympus Surgical. Olympus is a Japanese headquartered surgical manufacturing and selling business. It competes with companies such as Intuitive. Olympus makes minimally invasive medical scopes and cameras for surgeries in the fields of Endoscopy, Urology and Orthoscopy. The company has been a real leader in the fields of making scopes and cameras in high resolutions for years. It even utilized its proficiency in medical cameras and turned it into a business venture by selling Olympus commercial cameras. However, like all industries, companies attempt to get ahead by making a better product then their competitors; the medical industry proves no different. When such large companies both manufacture and sell their products, it is not uncommon for the bigger companies to buy out the smaller companies, because of the advancements in technology they possess, or because they might eventually pose a threat. Mergers are very common in this field. Intuitive has found success because of its quick ability to put patents on all
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2 its inventions that give it a competitive advantage and to quickly buy out any company it feels poses a threat. It has done this both successfully and legally for years, which made it an easy investing choice. Olympus buys out companies as well, which has led to its strong brand image and success. However, controversy stemmed from a recent scandal that has been unearthed regarding an acquisition. Recently promoted, and first non-Japanese born CEO Michael Woodford was going through past mergers and accounting books when he stumbled upon something that he found peculiar. Woodford saw that the company had paid a great deal more for three companies than they were approximated to be worth, including an extremely inflated sum for the commission of the broker who made the deal happen.
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