Work

How to Sell a (Bankrupt) Company

Year: 2012

Type: article

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.

Source: International Review of Finance

DOI: 10.1111/j.1468-2443.2012.01156.x

Authors: Francesca Cornelli, Leonardo Felli

Institutions: Centre for Economic Policy Research, London Business School, London School of Economics and Political Science

Language: English

Topic: Corporate Insolvency and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1787899513

FWCI: 2.478

Cites: 37

Cited by: 16

Related to: 10