BEC 5 M7: Economic Effect of Significant Transactions Flashcards

1
Q

circular Combination

A

when different business units with relatively remote connections come together under single management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

diagonal combination

A

when a company that engages in an activity integrates with another company that provides ancillary support for that primary activity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

tender offer

A

company makes an offer directly to shareholders to buy the outstanding shares of another company at a specific price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

three kinds of divestiture

A
  1. Sell-off
  2. Spin-off
  3. Equity Carve-out
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Sell-off

A

outright sale of a subsidiary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Spin-off

A

creates a new, independent company by separating a subsidiary business from a parent company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

equity carve-out

A

occurs when a subsidiary is made public through an IPO, thereby creating a new publicly listed company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Difference between tender offer and acquisition

A

In tender offer, the buying company goes to the shareholders. In an acquisition, the buying company goes to management.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly