Most of the stakeholder were very successful in their move to buy other business to make them strong in the trade and also boost their performance. US Toys as a company decided to some of the activities that allowed them to become strong in the competing market.  First, they upgraded their store operation to enhance customer experience. Secondly, they reinvigorated their merchandise and rationing their store network and supply chain. They also improved their systems and increased its global product sourcing. These moves help them to become strong in the market and compete fairly with well-established businesses. However, to gain a competitive advantage over other companies, the company decided to merge with other reliable companies. When their common stock loses value as they were trading with a stock of 12.02 dollars per share, they decided to sell their entire worldwide operation as a way to maintain continuity in the business world.

Several of their stakeholders had a positive financial report that helped to make positive returns each year. Their need to reduce expenses made then to agree on the reduction that will lead to 125 million dollars annually. The sale of their company’s worldwide shows how successful their business is and how they can continue to survive in a competitive environment. The expected return from this action is that in the year 2004, they announced that their net capital expenditure was 477 million dollars and ended the year with a 2.2 billion dollars in cash. This clearly shows that their move to reduce the expenses benefited the company as they rip many benefits from it. For TOYS “R” US- international, they experienced a sales that exceeded 2.7 billion dollars and had operating earnings of 220 million dollars. The stakeholder’s decisions to lower expenses and also to sell their entire operation in 2005 changed the business and it became highly competitive. All these actions were beneficial and show the success that US Toys had in leverage buyout because the management was able to make a significant acquisition without using a lot of the money. This is attributed to the support that the company got from the stakeholders including the employees who also worked had to ensure the business become successful.

The path that the business followed in 2005 when the management realized that the stock was undervalued and decided to sell the entire business to Bain/KKR/Vornado group was a good move that helps to protect the company from collapsing. The expected benefits from the LBO included cutting certain costs, improving their logistics, and turning their merchandise from a low margin electronic to more exclusive products. They also expected to gain much profit from the deal as they were to offer their shares at 26.75 dollars per share. Through this, the company was assured of high value that they could use in other activities to improve their performance in the market. This move also rescued some of their stores that were operating but were more dead than alive. As such, this is a good business idea that can rescue any business that is on the verge of collapsing.