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- Publisher
- Wiley
- Copyright
- International Review of Finance © International Review of Finance Ltd. 2012
- ISSN
- 1369-412X
- eISSN
- 1468-2443
- DOI
- 10.1111/j.1468-2443.2012.01156.x
- Publisher site
- See Article on Publisher Site
Abstract
This paper suggests a way to sell a company that maximizes the proceeds from the sale. The key to this proposal is the option left to the seller to retain a fraction of the shares of the company. Indeed, by retaining the minority stake, the seller can transfer the control of the company while reducing to a minimum the rents that the sale of the company leaves in the hands of the buyer. We then focus on two main applications of this idea: bankruptcy procedures and carve‐outs.
Journal
International Review of Finance – Wiley
Published: Jun 1, 2012