Remove 2010 Remove Finance Remove Fixed Costs Remove Price
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How to Know If a Spin-Off Will Succeed

Harvard Business Review

A 2010 meta-analysis detailed many of the different issues that make divestiture so hard to evaluate consistently. The outsiders provide new blood in support functions such as finance, legal, or administration. ” When it comes to divestitures, bad economics usually get discounted in the transaction price.

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Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

Two companies transfer selected similar assets into a joint venture in order to support the orderly management of capacity in their industry and reduce the risk of prices spiraling downward. But on the other hand, in order to safeguard the company’s future competitiveness, CEOs may have no other choice than to invest now.