Page 34 - MAC4861_2 Finance class slides part 2
P. 34

BUSINESSES IN DIFFICULTY


            Overview








            • Restructuring in the form of disinvestment may

                help with dealing with financial distress, but may


                also form part of a strategy of ‘best-practice


                parenting’.



            • According to this strategy, holding companies


                should display a superior means of ‘parenting’ the


                subsidiary and, if not possible, it should then

                consider divesting.




            • Here, the level of ‘difficulty’ in which the subsidiary

                finds itself necessitates a broader reading.





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