Demerger


Demergers can impact positively on the quality of management teams, both for the pre-existing company as well as the new one. Consideration of strengths and weaknesses, relevant case studies and practical implication steps help to inform and support decision making.

Technique Overview

Demerger

Demerger Definition

A demerger is the process of removing a business from the encumbrance of a conglomerate. As such, it is the opposite of a merger or an acquisition. It occurs when a firm takes part of its business and spins it off into a separate business entity (Clark-Meads 1996a).

Demerger Description *

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Business Evidence

Strengths, weaknesses and examples of Demerger *

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Business Application

Implementation, success factors and measures of Demerger *

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Professional Tools

Demerger videos and downloads *

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Further Reading

Demerger web and print resources *

Demerger references (4 of up to 20) *

  • Andrews, D. (2007) Asia and Europe set for demerger boom, International Financial Law Review, Vol. 26 (9), pp. 10-10.
  • BBC News (2010) Cable & Wireless Demerger Takes the FTSE 100 to 101, BBC News, 26 March 2010. [online] Available at: (http://news.bbc.co.uk/1/hi/business/8589055.stm) [Accessed October 2015].
  • Clark-Meads, J. (1996a) Thorn-EMI Demerger Pends; Music Arm Will Not Be Sold, Billboard, Vol. 108 (7), pp. 1-6.
  • Clark-Meads, J. (1996b) EMI profits up in 1st post-demerger figures, Billboard, Vol. 108 (48), pp. 8-10.

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