Divestitures: Creating Value Through Strategy, Structure, and Implementation

by Emilie R. Feldman

Overview

Today’s best-known expert on the topic shows business leaders how to dramatically increase corporate value through smart, strategic divestitures

You've focused on mergers and acquisitions, but how much do you know about divestitures? Wharton Professor Emilie R. Feldman provides a comprehensive primer on what strategic objectives divestitures can achieve, which businesses divestitures typically involve, what divestiture structures companies can choose from, and how to implement divestitures to maximize their financial benefits.

Divestitures are among the hottest transactional structures today. Divestitures: Creating Value Through Strategy, Structure, and Implementation shows executives, board members, transactional advisors, educators, and others how strategic divestitures can be used to enhance corporate value and performance. The book is organized into three sections:

• Strategy: Remove problems, improve focus, reconfigure the corporate portfolio, and address regulatory requirements
• Structure: Sales, spinoffs, equity carveouts, Reverse Morris Trusts, joint ventures, and tracking stocks
• Implementation: Separate the divested business, reconfigure internal processes, and reshape external perceptions

This essential book fills major gaps in the professional and academic markets, providing the only available rigorous, research-based treatment of this important strategic tool.

Product Details

ISBN-13:	9781264277568
Publisher:	McGraw Hill LLC
Publication date:	12/06/2022
Pages:	288
Product dimensions:	6.30(w) x 9.30(h) x 1.20(d)

About the Author

Emilie R. Feldman is the Michael L. Tarnopol Professor and Professor of Management at the Wharton School of the University of Pennsylvania. Her research focuses on corporate strategy and governance, with particular interests in the role that divestitures, spinoffs, and mergers and acquisitions play in corporate reconfiguration, the internal functioning of multi-business firms, and the impact that large shareholders have on strategic decision-making and outcomes. She has served as an external consultant, expert witness, and collaborator to some of the world’s largest law, accounting, and consulting firms, and to major corporations.

Table of Contents

List of Exhibits ix

Acknowledgments xi

Introduction 1

Part I Divestiture Strategy

Chapter 1 Removing Problematic Businesses 15

Chapter 2 Improving Corporate Focus 31

Chapter 3 Reconfiguring the Corporate Portfolio 45

Chapter 4 Addressing Regulatory Requirements 63

Part II Divestiture Structure

Chapter 5 Sales 79

Chapter 6 Spinoffs 95

Chapter 7 Appropriating Value from Spinoffs: Equity Carveouts and Reverse Morris Trusts 113

Chapter 8 Hybrid Divestiture Structures: Joint Ventures and Tracking Stocks 135

Part III Divestiture Implementation

Chapter 9 Separating the Divested Business 159

Chapter 10 Reconfiguring Internal Processes 177

Chapter 11 Reshaping External Perceptions 193

Conclusion 207

Appendix A Minor Divestiture Structures 211

Appendix B Representative Divesting Joint Ventures (>$1 Billion) 213

Notes 217

Index 263