The Case Of Hewlett Packard 's Autonomy Deal

1358 Words Dec 12th, 2015 6 Pages
Define the following terms
Leveraged Buyouts also known as LBO can be defined as the acquisition of a company, however the buyer only puts up small amount of the money that is being used to acquire the company while most of the money that is used is borrowed.
Downscoping can be defined as when a company reduces sections of the business inside of the company in order to better manage and focus on its core business.
Functional structure is when employees of a company are separated into groups based on specialty.
Related diversification can be defined as when a business decides to expand their product offerings by offering new products that are similar to those it currently offers.

The mysterious case of Hewlett-Packard’s Autonomy deal
Before reading the article “The mysterious case of Hewlett-Packard’s Autonomy deal” I always believed that business takeovers worked and helped companies grow. I was always under the impression that a company will buy another company and just keep growing and they will never buy a company in which they did not think they can make money from. After reading this article and reading a few more articles that I found, my opinion has changed. I believe that HP paid a high price for Autonomy because they believed that the UK software company was going to help them grow as a business. What they didn’t know was the fact that the numbers the company gave HP had accounting improprieties and disclosure failures. With the numbers that HP received they…

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