AFMP4
Syllabus D. Corporate Reconstruction And Re- Organisation D2. Business re-organisation

D2a. Unbundling 1 / 7

Syllabus D2a)

Recommend, with reasons, strategies for unbundling parts of a quoted company.

Unbundling is the process of selling off non-core businesses

Why do companies decide to Unbundle their business?

  • to release funds

  • to reduce gearing

  • to allow management to concentrate on their chosen core business

The main forms of Unbundling are:

  1. Divestment

  2. Demergers

  3. Sell-offs

  4. Spin-offs

  5. Management buy-outs.