Match List-I with List-II:

Choose the correct answer from the options given below:

Correct option is A

The correct matching is: A-IV, B-III, C-I, D-II

1. A. Leveraged Buyouts (IV):
   This involves the acquisition of a company financed heavily through debt, matching with IV.

2. B. Divestment (III):
   Refers to the sale of assets, divisions, or subsidiaries to outsiders, aligning with III.

3. C. Sell-off (I):
   Occurs when a company sells a part of its business to a third party, matching with I.

4. D. Spin-off (II):
   Involves creating a new company from an existing entity by separating a division or subsidiary, aligning with II.

Information Booster:

Corporate Restructuring Types Explained:

1. Leveraged Buyouts (LBO): This refers to the acquisition of a company using borrowed funds. The acquiring entity pledges the assets of the target company as collateral. LBOs are common in private equity.
2. Divestment: Involves selling off a company’s assets, divisions, or subsidiaries to improve focus or raise capital. It is a strategic restructuring move often used to eliminate non-core business units.
3. Sell-off: A straightforward sale of a business segment or assets to another company or third party. Sell-offs help organizations focus on their core operations or manage financial needs.
4. Spin-off: Involves creating an independent company from an existing division or subsidiary. It is often used to unlock shareholder value and create focused business entities.

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