EBK PRINCIPLES OF MANAGERIAL FINANCE
EBK PRINCIPLES OF MANAGERIAL FINANCE
14th Edition
ISBN: 8220100666759
Author: ZUTTER
Publisher: PEARSON
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Chapter 18.2, Problem 18.5RQ
Summary Introduction

To discuss: Operating unit and divestiture.

Introduction:

The two main mechanisms of mergers are leveraged buyouts (LBO) and divestitures.

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Students have asked these similar questions
What are the major types of divestitures? Whatmotivates firms to divest assets?
Which one of the following is the least likely reason a company may acquire an ownership interest in another company? Select one: a.To benefit form an overvaluing of assets in the investee company b. To oust an inefficient management team c. To take advantage of operating and/or cost synergies d. To exercise an active role in the business' activities
Discuss circumstances in which a Management Buy - Out (MBO) might be an appropriate form of divestment from a business.
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