Business Strategy
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Details
Textbook:
Pages : 323;
Paperback;
210 X 275 mm approx.
Workbook:
Pages :
321; Paperback;
210 X 275 mm approx
Pricing
Textbook Price: Rs. 750 ;
Workbook Price: Rs. 700;
Available only in INDIA
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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.
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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.
