ch11 - Chapter 11 Corporate Restructuring Corporate and...

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Corporate Restructuring Corporate Restructuring and Divestitures and Divestitures 11 11 Chapter Chapter
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Chapter 11-2 Corporate Restructuring Strategies With constantly changing competitive environments, firms must consistently adjust Managers have many options to change firm structure without taking part in a merger or acquisition Corporate restructuring should occur within the framework of the firm’s overall strategy No one-size-fits-all approach to corporate decision making
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Chapter 11-3 Types of Restructuring Key methods of reorganizing assets and ownership Type Definition Example Asset sales Sale of division or other assets to another firm, usually for cash Quaker sold Snapple to Triarc (1997) Equity carve-out Public offering of partial interest in subsidiary creating new firm with at least some autonomy Pharmacia carved-out 14% of Monsanto (2000) Spinoff Pro rata distribution of subsidiary shares creating new independent firm Sears spun off Dean Witter Discover (1993)
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Chapter 11-4 Types of Restructuring Variations of restructuring and divestiture Type Definition Example Split-up Separation of firm into 2+ parts, often via spinoff HP dividing into HP and Agilent
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This note was uploaded on 05/10/2011 for the course MGT D72 taught by Professor Chau during the Spring '11 term at University of Toronto- Toronto.

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ch11 - Chapter 11 Corporate Restructuring Corporate and...

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