Demerger - Misplaced Pages

(Redirected from Demerged) Form of corporate restructuring

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A demerger is a form of corporate restructuring in which the entity's business operations are segregated into one or more components. It is the converse of a merger or acquisition.

A demerger can take place through a spin-off by distributed or transferring the shares in a subsidiary holding the business to company shareholders carrying out the demerger. The demerger can also occur by transferring the relevant business to a new company or business to which then that company's shareholders are issued shares of.

In contrast, divestment can also "undo" a merger or acquisition, but the assets are sold off rather than retained under a renamed corporate entity.

Demergers can be undertaken for various business and non-business reasons, such as government intervention, by way of antitrust law, or through decartelization.

References

^ Bryer, Lanning G. (2002). Intellectual property assets in mergers and acquisitions. John Wiley and Sons. pp. 12.2–12.3. ISBN 978-0-471-41437-7.
Krishna, K.L.; Uma Kapila (2009). Readings in Indian Agriculture and Industry. Academic Foundation. p. 599. ISBN 978-81-7188-734-7.

Corporate finance and investment banking

Capital structure

Transactions
(terms/conditions)

Equity offerings	At-the-market offering Book building Bookrunner Bought deal Bought out deal Corporate spin-off Direct public offering Equity carve-out Follow-on offering Greenshoe Reverse Initial public offering Pre-IPO Private placement Public offering Rights issue Seasoned equity offering Secondary market offering Underwriting
Mergers and acquisitions	Buy side Contingent value rights Control premium Demerger Divestment Drag-along right Management due diligence Managerial entrenchment Mandatory offer Minority discount Pitch book Pre-emption right Proxy fight Post-merger integration Sell side Shareholder rights plan Special-purpose entity Special situation Squeeze-out Staggered board of directors Stock swap Super-majority amendment Synergy Tag-along right Takeover Reverse Tender offer
Leverage	Debt restructuring Debtor-in-possession financing Dividend recapitalization Financial sponsor Leveraged buyout Leveraged recapitalization High-yield debt Private equity Project finance

Valuation

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References