Question: a. Do you agree with the following statement? Explain the reasons. A business with high growth potential may not be a good candidate for an

a. Do you agree with the following statement? Explain the reasons.

A business with high growth potential may not be a good candidate for an LBO.

b. What factors influence a parent firms decision to undertake an equity carve-out rather than a spin-off? Explain the reasons.

c. What is the major drawback of equity carve-out? Why? Explain the reasons.

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