MGST 391 Lecture Notes - Management Buyout, Venture Capital, Capital Structure
28 Apr 2013
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Document Summary
A capital reconstruction scheme is a scheme whereby a company reorganizes its capital structure . Capital restructuring scheme: calculate what each party"s position would be in a liquidation, assess possible sources of finance, design the reconstruction, assess each party"s position as a result of the reconstruction, check that the company is financially viable. Exit strategies for a venture capitalist: sale of shares to public or institutional investors following a flotation, sale of shares to another company, sale to company itself or its owners, sale to institution management. Divestment is a proportional or complete reduction in ownership stake of an organization e. g. divestment- (selling of business) To concentrate on a particular part of business. Demerger is splitting up of a corporate body into two or more separate and independent bodies. Sell off is a form of divestment involving the sale of a part of a company to third party usually another company.
