16.02.2014 Views

equity carve-out (eco) - The Center for Paper Business and Industry ...

equity carve-out (eco) - The Center for Paper Business and Industry ...

equity carve-out (eco) - The Center for Paper Business and Industry ...

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

EQUITY CARVE-OUT (ECO)<br />

CONCLUSIONS<br />

Restructuring of corporations is usually carried-<strong>out</strong> to improve<br />

per<strong>for</strong>mance.<br />

A majority-owned <strong>equity</strong> <strong>carve</strong>-<strong>out</strong> is one such <strong>equity</strong> claim that would<br />

allow the <strong>carve</strong>d-<strong>out</strong> business units to improve per<strong>for</strong>mance by<br />

exposing them to the capital market <strong>and</strong> attracting new investors.<br />

ECO brings a new management team into the organization. This usually<br />

results in improvement in operating per<strong>for</strong>mance, providing<br />

incentives <strong>for</strong> managers <strong>and</strong> increasing their strategic flexibility.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!