Kamikaze defense, a term derived from the Japanese military practice of sending young pilots in suicide attacks against American Naval forces during World War II, is a last-ditch protective maneuver used by companies to fend off a hostile takeover. Despite the potential dangers, kamikaze defense is considered a common defensive tactic employed by company CEOs to deny potential suitors in acquisitions.

The primary purpose of a Kamikaze defense is to give a company additional bargaining power when facing potential acquirers in order to obtain a better deal all-around. Companies, especially those facing a financially distressed situation, use the kamikaze defense to prevent unwanted takeover by reducing the potential acquirer's returns on money, time, and resources.

There are several ways in which a company can deploy a kamikaze defense. One of the most common forms is selling the company's crown jewels – its most valuable assets. This denies the potential suitor access to the most lucrative elements of the prospective acquiring company. Another defense is the fat man strategy, which involves making the company as unattractive as possible to potential buyers. Strategies such as postponing product launches, draining the company's finances, and applying for legal injunctions can all be employed to make the hostile takeover more difficult.

The kamikaze defense strategy can be expensive and have damaging long-term consequences for a company. Many shareholders, investors, and customers can become alienated if the strategy is employed, and the resulting financial decline can be difficult to recover from. Companies should carefully consider their options before resorting to a kamikaze defense. In addition, the strategy is often not effective since many potential acquirers are willing to absorb short-term losses in order to acquire long-term gains. A kamikaze defense is therefore risky for the company, but can produce returns in the long-term if done correctly.