Business Strategy


ICMR India ICMR India ICMR India ICMR India RSS Feed

Img: 1 2 3


Pages : 323; Paperback;
210 X 275 mm approx.

Pages : 321; Paperback;
210 X 275 mm approx


Textbook Price: Rs. 750 ;
Workbook Price: Rs. 700;
Available only in INDIA

Detail Table of Contents

Click below to view

Buy Now

Please allow 5 to 10 days for delivery.

Business Strategy Textbook | Workbook

Detail Table of Contents

Click below to view

<< Chapter 17

Divestitures and Anti-Takeover Defense : Chapter 18

SUMMARY: Divestitures are undertaken for two main reasons: the assets are worth more as part of the buyer's organization than as part of the seller's; or the assets are actively interfering with other profitable operations of the seller. The reasons for divestitures can also be classified as: efficiency gains and refocus, information effects, wealth transfers, and tax reasons.

Divestment of a business requires a team of functional experts under the direction of an experienced project manager. Corporations devoid of a formal corporate development activity may find qualified divestiture managers within the financial, legal or corporate planning departments. After having assembled the core team, the project manager should formulate a definitive project plan and obtain approval of the intended approach from the corporate management.

In the stage of preparing for the divestiture, a formal offering memorandum may be prepared. The offering memorandum may have the following components: executive summary; buyer procedure; background; the market; products / services; facilities and fixed assets; systems and operations; organization, management, and personnel; and key financial information. Valuation techniques such as book value, comparables, discounted cash flow (net present value), payback, or replacement cost method may be used for valuing the business.

The selling process consists of four key elements, namely, identification of potential buyers, selection of the type of selling process, business reviews, and negotiating and closing of the deal. Selling processes may be of four types – competitive bidding, sequential selling, one-buyer, and going public.

A takeover is the acquisition of one company by another. Anti-takeover amendments deal with the amendments to the corporate charter of a firm which are intended to make it more difficult for an undesirable acquirer to take over the firm. The four types of anti-takeover amendments are: super majority amendments, fair-price amendments, classified boards, and authorization of preferred stock. Other anti-takeover measures include poison pill defense, targeted share repurchase, and standstill agreements.

Related Case Books:-

Case Studies in Business Ethics Case Volume| Case Study VolumesCase Studies in Market Research & Product Development Vol.II

23 Case Studies
380 pages, Paperback,
Available only in INDIA

Case Studies in Business Ethics Case Volume| Case Study Volumes

Related Textbook:-

Marketing Communication Textbook| Marketing CommunicationManagement Control Systems (2nd Edition) Textbook

528 pages, Paperback;
210 X 275 mm approx,
Price: Rs. 900 ;
Available only in INDIA

Case Studies in Business Ethics & Corporate Governance Case Volume| Case Study Volumes