Typically, in these transactions, the financial sponsor will turn the acquired business into a standalone company, necessitating the creation of certain functions that were formerly provided by the parent company.
Divisional reverse leveraged buyout (D-RLBO)edit
A D-RLBO is a leveraged buyout of a division or subsidiary that subsequently comes to trade on the public markets. From the point of view of a divesting firm, the D-RLBO permits the sale of a subsidiary to its management and/or private investors who subsequently restructure its assets and capital structure to enhance overall firm value.
divisional, buyout, divisional, buyout, carveout, finance, transaction, which, corporate, division, business, unit, subsidiary, acquired, using, same, financial, structuring, leveraged, buyout, typically, these, transactions, financial, sponsor, will, turn, ac. A divisional buyout or carveout in finance is a transaction in which a corporate division business unit or subsidiary is acquired using the same financial structuring as a leveraged buyout Typically in these transactions the financial sponsor will turn the acquired business into a standalone company necessitating the creation of certain functions that were formerly provided by the parent company Divisional reverse leveraged buyout D RLBO editA D RLBO is a leveraged buyout of a division or subsidiary that subsequently comes to trade on the public markets From the point of view of a divesting firm the D RLBO permits the sale of a subsidiary to its management and or private investors who subsequently restructure its assets and capital structure to enhance overall firm value Avon Products Inc provides an example Avon divested specialty jeweler Tiffany amp Co to private equity investors who subsequently accomplished an initial public offering IPO References editHite G amp Vetsuypens M R 1989 Management buyouts of divisions and shareholder wealth The Journal of Finance 44 953 970 Singh H 1990 Management buyout Distinguishing characteristics and operating changes priorto public offering Strategic Management Journal 11 111 129 nbsp This private equity or venture capital related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Divisional buyout amp oldid 1185694321, wikipedia, wiki, book, books, library,
