Finance Report: Key Concepts and Summaries of Chapters 16-18

This report provides summaries of chapters 16, 17, and 18, focusing on key finance concepts. Chapter 16 discusses alternative exit and restructuring strategies, including divestitures and mergers & acquisitions, with an emphasis on auction dynamics. Chapter 17 covers bankruptcy, reorganization, and liquidation, highlighting the importance of strategic vision and valuation in failing firms, alongside the use of student study guides. Chapter 18 analyzes cross-border mergers and acquisitions, addressing challenges, deal structures, financing, valuation, and execution in both developing and developed countries. The report emphasizes the practical application of these concepts and the importance of understanding financial strategies for business success.

Chapter summaries
Chapter 16
This chapter deals with the alternative exit and restructing strategies, where the main
aspects are divestitures, spin-offs, carve out, split offs and tracking stocks. Oscar Wilde’s
quote about experience seems apt in terms of rectifying their mistakes. As a matter of
specification, the chapter deals with the dynamics of mergers and acquisitions. The USP of
the chapter is the example of auction, which enhances the clarity of the readers regarding the
fundamental concepts (Cooper & Finkelstein, 2014). Questions raise about the aspect of
alternative strategies. The need for alternative strategies arise when companies and
organizations encounter a prolonged crisis period. Even sometimes, the situations becomes
worse to some extent that the business needs to be sold out. It is at this stage that means of
negotiations needs to be achieved, which possesses flexibility to maintain the stability in the
relationship between the buyers and sellers. Firmness in the means of negotiation enables the
personnel to regulate the bidders and the prices, which they set for the products and services
in the auctions (Marks & Mirvis, 2015). The process of auction gains an important position in
this chapter. It is viewed as one of the effective means of setting the highest price for selling
the business. Countering this, setting high price deprives the businessmen of the middle class
investors, who lack the needed affordability. Herein lays the appropriateness of the
characteristics of auction as chaotic and time consuming. However, with the help of auctions,
the businessmen can enhance the marketing activities, which are intangible and difficult for
appraisals (Brueller, Carmeli & Drori, 2014).
Chapter 17
The main focus of the chapter is on bankruptcy, reorganization and liquidation. These
financial aspects are the last options for the firms, which have failed to satisfy the needs,

demands and requirements of the stakeholders and shareholders. These options are enough to
adopt the exit procedures. Strategic vision towards this method proves beneficial in terms of
restructuring the business scenario through alternative means. This restructuring is the main
theme of this chapter (Barney & Turk, 2016). Along with this, the chapter assists the failing
firms to adopt appropriate strategies for renovating their business. Herein lays the
appropriateness of the thesis quesstion, “how to value such firms?”. Theoretical approach
towards these aspects enhances the clarity of the businessmen in terms of predicting
situations like bankruptcy. Carrying out in-depth studies about this theoretical approach
reflects the approach of the businessmen towards mitigating the stress of the personnel, due
to the incapability to live up to the expectations of the stakeholders and shareholders.
Attachment of the Student Study Guide is an inspiration for the aspiring students to develop
their knowledge about how to deal with the situations like bankruptcy. The website is flexible
enough for establishing contacts with the experienced personnel for solving the doubts
regarding the financial issues (Rahman & Lambkin, 2015).
Chapter 18
This chapter attains a cultural diversity. This is due to the aspect of “cross boarder” in
the title. The main aspects of the chapter is to analyze the mergers and acquisitions and value
them for adding maximum value to the profit margin. At the initial stage, mention of the
importance of mergers and acquisitions enhances the awareness of the readers. Within this,
the inclusion of challenges, integrated structures of the deals, financing and valuation and
execution, enables the businessmen in terms of its usage in the developing and developed
countries. Usage of the term “local country” projects the approach of the native country
towards mergers and acquisitions (Cuypers, Cuypers & Martin, 2017).