Page 90 - MAC4861_2 Finance class slides part 2
P. 90
MERGERS & ACQUISITIONS
Corporate restructuring background
• According to a new research area called ‘best
practice parenting’, investors are increasingly
demanding from firms a demonstration of their
superior ‘parenting’ of subsidiaries.
• This dictates that firms not only expand through
M&As and other transactions, but may also
demand timely divestitures.
• As explained, there are various forms of corporate
restructuring; however, this learning unit focuses
on what is probably the most sensational: mergers
and acquisitions.
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