Chapter 16

Alternative Exit and Restructuring Strategies: Divestitures, Spin-Offs, Carve-Outs, Split-Offs, and Tracking Stocks

Abstract

Many corporations, particularly large, highly diversified organizations, are reviewing constantly ways in which they can enhance shareholder value by changing the composition of their assets, liabilities, equity, and operations. These activities generally are referred to as restructuring strategies. Restructuring may embody both growth and exit strategies. Growth strategies have been discussed elsewhere in this book. The focus in this chapter is on those strategic options allowing the firm to maximize shareholder value by redeploying assets through downsizing or refocusing the parent company. As such, this ...

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