Unformatted text preview: wnsizing, but not
eliminating key employees from its primary
– Smaller firm can be more effectively managed by the
top management team.
top 1–31 Restructuring: Leveraged Buyouts (LBO)
• A restructuring strategy whereby a party buys all
of a firm’s assets in order to take the firm private.
– Significant amounts of debt may be incurred to
finance the buyout.
– Immediate sale of non-core assets to pare down debt. • Can correct for managerial mistakes
– Managers making decisions that serve their own
interests rather than those of shareholders.
interests • Can facilitate entrepreneurial efforts and
1–32 FIGURE 7.2 Restructuring and Outcomes 1–33 THANK YOU
THANK CHAPTER 9
Cooperative Strategy Agenda 1. Define cooperative strategies and explain why firms use them. 2. Define and discuss three types of strategic alliances. 3. Name the business-level cooperative strategies and describe their
use. 1–36 Coop...
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- Spring '12
- Firm, Achieving Acquisition Success