Pre-spin leverage

A key benefit in the outright sale of a business is cash, which may be used to pay down debt, buy back stock, or finance corporate development. However, it is possible to raise cash in a spin-off by leveraging the subsidiary before cutting it loose

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Bibliographic Details
Published in:Mergers & acquisitions 1996-05, Vol.30 (6), p.49
Main Authors: Hudspeth, Thomas H, Kliegman, Michael J
Format: Magazinearticle
Language:English
Subjects:
Corporate finance
Spinoffs
Stockholders
Online Access:Get full text
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Description
Summary:A key benefit in the outright sale of a business is cash, which may be used to pay down debt, buy back stock, or finance corporate development. However, it is possible to raise cash in a spin-off by leveraging the subsidiary before cutting it loose
ISSN:0026-0010