Alternative restructuring topics

Alternative restructuring topics - Business alliances and...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Business alliances and restructuring Thomas J. Boulton FIN 461 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Motivation Joint ventures Strategic alliances Equity partnerships Licensing agreements Franchise alliances Many firms pursue other strategic options to maximize shareholder value Divestitures Spin-offs/split-ups Carve-outs Bankruptcy
Background image of page 2
Business alliances Joint ventures (JVs) : entity created by multiple parties who contribute equity and share in the revenues, expenses, and control of the entity. Strategic alliances : collaborative agreement between multiple parties to achieve some strategic goal. Do not involve creation of a separate legal entity. Equity partnerships : similar to a strategic alliance but also involve parties making a minority investment in one another. Licensing agreements : exchange patent, trademark, copyright, license in exchange for royalty or fee. Franchise alliances : network of alliances linked by a franchise agreement that grants exclusive rights to operate a brand in a geographic region.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Business alliances Motivations for business alliances: Risk sharing Sharing proprietary knowledge Sharing management skills and resources Gaining access to new markets Globalization Prelude to acquisition/exit Favorable regulatory treatment
Background image of page 4
Business alliances Key deal structuring issues: Scope Duration Legal form Governance Resource contributions Ownership determination Financing ongoing capital requirements Equity vs. debt financing Control Dispute resolution Contract termination Transfer of interests Taxes Management and organizational issues
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/19/2011 for the course FIN 461 taught by Professor Boulton during the Fall '11 term at Miami University.

Page1 / 18

Alternative restructuring topics - Business alliances and...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online