The case study can be used to achieve the following aims: • To illustrate the main restructuring options (spinoff, carve out, and issuance of tracking stocks) and highlight the comparative advantages resulting from a spinoff. • To outline the pros and cons of diversifying as opposed to refocusing on the core business. • To pinpoint factors that substantiate the perception that the market valuation factored in a conglomerate discount. • To show how, by analyzing multiples of comparable firms, we can come up with a Sum of Parts valuation of the Group, which we can then compare with the actual market valuation to verify whether a conglomerate discount actually had been applied.
Fiat-Fiat Industrial: The value of a Spin Off
GATTI, STEFANO;
2012
Abstract
The case study can be used to achieve the following aims: • To illustrate the main restructuring options (spinoff, carve out, and issuance of tracking stocks) and highlight the comparative advantages resulting from a spinoff. • To outline the pros and cons of diversifying as opposed to refocusing on the core business. • To pinpoint factors that substantiate the perception that the market valuation factored in a conglomerate discount. • To show how, by analyzing multiples of comparable firms, we can come up with a Sum of Parts valuation of the Group, which we can then compare with the actual market valuation to verify whether a conglomerate discount actually had been applied.
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
