Question
A divestiture is an important means of creating value for companies in the mergers, acquisitions, and the consolidation process. Below you have an explanation of
A divestiture is an important means of creating value for companies in the mergers, acquisitions, and the consolidation process. Below you have an explanation of 2 types of divestures. Identify each typed of divesture from the description provided below and explain the features of that divesture. Explain why a company may decide to embark on this type of divesture. (Please note, explain in full sentences, do not use bullet points) A. the divestiture of a business unit in which a parent company sells a minority interest of its share in the subsidiary company to investors outside of the company. B. the process in which a parent company sells/ distributes all of its existing shares within a subsidiary company to its existing shareholders as a result of which a completely new and independent company is formed out of it
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