Corporate restructuring

Free IMA CMA Part 2 (Strategic Financial Management) lesson in Corporate Finance. 9 min read, ~1,406 words.

Horizontal = same industry; vertical = supply chain (upstream or downstream); conglomerate = unrelated industries. LBO = acquisition funded 70 to 90% with debt collateralized by target assets and serviced by target cash flow. Defenses: poison pill (rights plan), staggered board, golden parachute, leveraged recap (debt-funded special dividend or buyback)...

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