Michael Bell and Clara Howard look at what lessons we can learn from demergers
In the current economic climate corporate buyers are few and far between and private equity investment is patchy so the attraction of what is often considered a less risky option than mergers or acquisitions the demerger is proving appealing for some companies as a means to creating shareholder value. As well as creating shareholder value a demerger also has other advantages over a merger or acquisition:
● Employees are likely to benefit in that they may obtain more autonomy and for the company's benefit employees are often already in place;
● The cost of a demerger should be lower than that of a merger or acquisition;
● The shareholder reaction is likely to be...
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Michael Bell and Clara Howard look at what lessons we can learn from demergers
In the current economic climate corporate buyers are few and far between and private equity investment is patchy so the attraction of what is often considered a less risky option than mergers or acquisitions the demerger is proving appealing for some companies as a means to creating shareholder value. As well as creating shareholder value a demerger also has other advantages over a merger or acquisition:
● Employees are likely to benefit in that they may obtain more autonomy and for the company's benefit employees are often already in place;
● The cost of a demerger should be lower than that of a merger or acquisition;
● The shareholder reaction is likely to be...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
