Problem:
Compare and contrast M&A failures.
A. Discuss the reasons why an M&A fails (technical and legal insolvency, and bankruptcy).
B. Once the failure of an M&A occurs, what happens to the assets of both companies? Be sure to consider what happens to the stakeholders, image of the company, price per share, market share, company assets, position in the industry, goodwill, and service capability within the industry.
C. Be sure to compare and contrast the two to three forms of corporate restructuring. Would you recommend any of the following? Be sure to defend your position:
1) Spin-offs
2) Divestitures
3) Liquidation
4) Carve-out