A financial buyer may use a holding company structure because they expect to sell the firm within a relatively short time period.

Name: A financial buyer may use a holding company structure because they expect to sell the firm within a relatively short time period.
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Question

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A financial buyer, such as a private equity firm, often uses a holding company structure to facilitate the acquisition and eventual sale of a firm, allowing for easier divestiture and potential tax advantages.

A Financial Buyer May Use a Holding Company Structure Because