Corporate restructuring

Free IMA CMA Part 2 (Strategic Financial Management) lesson in Corporate Finance. 10 min read, ~1,534 words.

Horizontal = competitors in the same industry; vertical = supply-chain links (supplier or distributor); conglomerate = unrelated industries. LBO = acquisition funded 70 to 90% with debt collateralized by target assets and serviced by target cash flow; ideal targets have stable cash flow and low leverage. Defenses: poison pill (rights...