{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Alternative restructuring topics

Alternative restructuring topics - Business alliances and...

Info icon This 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
Image of page 1

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

View Full Document Right Arrow Icon
Motivation Business alliances are an alternative to M&A 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
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.
Image of page 3

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

View Full Document Right 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
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
Image of page 5

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

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

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern