What is the difference between a spin-off, an equity carve-out and a divestiture?
Please complete the homework-3 assignment on “Private Equity and Corporate Restructuring” by this upcoming Sunday, October 3rd.
Discuss the following questions/topics using the textbook(Gaughan: Mergers, Acquisitions, and Corporate Restructurings 7th ed) and additional research. Your answers should include at least eight sources other than the textbook, multiple biblical integration, and be in APA format in order to be eligible to earn full credit on the assignment. A title page and abstract are not required, but is recommended. Please make sure to label each question.
Your analysis per question should be at least a minimum of a half-page written analysis, not including the question’s text.
Please make sure to “label” your work and include references at the end of the paper. You will want to answer the questions in order/sequence.
You should include a section on what the text states regarding the topic, what an Internet reference(s) state regarding the topic, and then provide a detailed original commentary on what you have learned regarding the question’s topic. Biblical scripture integration is encouraged for multiple questions is applicable in your opinion.
I would encourage you to write more than just a 1/2 page to 1-page plus of original written analysis, and limit your use of quotations. You will not be eligible for full credit on the question if blocks of quotations are utilized for the majority of your question’s answer.
Remember that zero points will be earned on the entire homework assignment if plagiarized work is present in the written document.
1. What is the difference between a spin-off, an equity carve-out and a divestiture?
Pages 424 and 430 address “Equity Carve-Outs versus Spin-Offs” and “Voluntary Liquidations or Bust-Ups”.
2. What caused the increase in divestitures during the 1970’s?
The “Historical Trends” of divestitures is addressed beginning on page 393 of the text.
3. Discuss two reasons for voluntary divestitures.
The “Reasons for Voluntary Divestitures” begins on page 397 of the text. Remember not only to list the reasons, but provide a discussion and your own opinions/thoughts/commentary on the reasons.
4. Research and discuss a recent corporate divestiture. What were the causes for this divestiture?
Cases are addressed from pages 397 to 402, but please feel free to research further companies that divested in the past ten years. Remember to address the causes for the specific divestiture in your analysis.
5. Describe the six step divestiture and spin-off process. Which step do you believe takes the most time and effort?
The six steps are addressed on pages 403 and 404.
6. What wealth effects may be experienced as a result of divestiture announcement?
The “Round-Trip Wealth Effects” and the “Wealth Effects of Sell-Offs” are addressed on pages 404 and 405 of the text.
7. Describe the tax consequences of a spin off.
The “Tax Treatment of Spin-Offs” are addressed on page 410.
8. Define and discuss the differences between a liquidation and a reorganization.
The “Reorganization Versus Liquidation” section begins on page 449. The reorganization process regarding chapter-11 bankruptcy is continued on the following pages.
9. What are the advantages and disadvantages of Chapter 11 bankruptcy?
The “Benefits of the Chapter 11 Process for the Debtor” begins on page 457 and there is a table 12.6 for your review on page 458.
Please note that the level of effort and analysis will determine your score earned on the homework-3 assignment. Please make sure to include references in addition to the text, and be careful not to plagiarize. Plagiarized work will automatically earn zero credit. A percentage match will be provided utilizing the Turnitin software platform.
Please provide your opinions on what you have learned on each of the topics.