Question

Do you think the fact that an acquisition was later divested means that it was a failure? why or why not?

Answer 1

An application is a corporate action in which company buys most it's not all of other forms ownership steaks to assume control of it and acquisition office when I'm buying company obtains more than 50% ownership in a target company as part of the exchange the acquiring company open purchase is the target company stock and other assets which allows the acquiring company to make decisions regarding the new S8 without the approval of target company shareholders acquisitions can be paid in cash in acquiring company stock or combination of both why do they occur acquisition companies perform for various reasons they may be seeking to achieve Economics of scale greater market share increase energy cost reduction and new niche offerings. The word divesment is the reduction of some kind of asset for financial ethical all political objectives of sale of an existing business by a firm. A divestment is the opposite of an investment.Firms has several motives . A firm may sell businesses that are not part of which cooperations so that it can focus on what it does the best. To obtain funds generate fund because it is selling one of its businesses in exchange of cash. A firm's breakup well you sometimes believe to be greater than the value of the firm as a hole in other words the sum of firms individual Essex liquidation values exceed the market value of the firm's combined assets.disvesting a part of a company may eliminate a division which is under performing or even failing. Regulatory authorities may demand divester . Pressure from shareholders for social reasons sometimes also called as disinvestment.hence when an acquisition was later becomes disvested does not mean that it was a failure.