Demergers Order of the Day
Material type:
- Raj
Item type | Current library | Call number | Status | Date due | Barcode |
---|---|---|---|---|---|
![]() |
Main Library | Raj (Browse shelf(Opens below)) | Available | AR8785 |
Browsing Main Library shelves Close shelf browser (Hides shelf browser)
Demerger involves breaking away from the existing entity and creating something new. Demergers were invented in America in the 1920s. The demerger fever is catching up in a fast changing and highly competitive environment to give a business feel of start-up. The main advantage of demergers is that they are tax neutral. Companies demerge to reduce the debt burden. After the demerger, the share prices of the companies may shoot up but the true financial position will remain same, as demergers do not automatically create any new value. There are various ways in which demerger takes place like split-off and spin-off.
There are no comments on this title.