Creating and Measuring the Value of Private Firms 21
Company A without subsidiary B
subsidiary B
Company C
Buying company
FIGURE 2.3 Structure of a Divestiture
(a)Company before Divestiture
Company A w/o
Company C
Management of sub
Old sub B
Consideration: Cash, securities,
or assets
Whatdoe
sCompanyAdowithconsideration?
(b)Company after Divestiture