Question: A company intends to sell one if its larger business
A company intends to sell one if its larger business units to a strategic buyer. The company’s controller is concerned because the sale would result in overcapacity of 25 percent in the company’s information technology (IT) center. He proposes that the company be compensated for these stranded costs by an increase in the sale price. Discuss what reaction you expect from the buyer. How would you propose to resolve the stranded costs issue?
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