How to Take Over a Company by Buying Its Stock

Obtain the company's most recent quarterly balance sheet. The company's ownership structure is outlined in the section of the balance sheet entitled stockholders' equity.
Determine the number of shares outstanding. This is a line item in stockholders' equity. It tells you how many units of stocks have been issued. For instance, let's say that company XYZ has 100,000 shares outstanding.
Calculate the number of shares you need to purchase in order to take over the company. Multiply the total number of shares outstanding by .51. In this example the answer is .51 multiplied by 100,000, or 51,000.
Calculate the amount of capital you need to raise in order to purchase a 51 percent stake in the company. Determine the current price of company stock by contacting your stockbroker, the company's investor relations department or by doing your own research. Let's say the current share price is $10. In this example, the total capital needed in order to purchase a 51 percent stake in the company is 51,000 multiplied by $10, or $510,000.
Secure capital. If you don't have the full stake, you can request a bank loan or solicit the help of other investors. As leverage or collateral, look at the current cash position of the company -- the first line item on the balance sheet. This amount can be used to pay off any loans once the company is taken over.
Purchase a 51 percent stake in the company. Contact your stockbroker to do this. She will execute the order in waves in order to minimize the increase in stock price as the stock is being purchased.

How to Calculate Fair Value for a Stock

Calculate the P/E ratio. The formula used to calculate the P/E ratio is 'current stock price per share' / ' current earnings per share.'
Compare the P/E ratio for your company with other companies in the same industry. For instance, if you want to find the fair value for a bank, you must compare the P/E ratio to other P/E ratios in the banking industry.
Interpret the meaning of the P/E ratio. A high P/E ratio means the company is overvalued and a low P/E ratio means the company is undervalued. For instance, if I own a company with a P/E ratio of 5 when the average P/E ratio for companies in the same industry is 3, I know that my stock is overvalued (expensive).
Adjust the stock price down to the average P/E ratio for the industry. If the average P/E ratio is 3, and the P/E ratio on my stock is 5 (current price $10 / earnings per share $2), then I can use the P/E equation to find what the stock price would need to be in order to have a P/E ratio of 3. The equation is: New P/E ratio x Earnings per share. The answer is 3 x $2 or $6. The fair market value for this stock is $6, not $10.