A(n) ______ is the reverse of a merger.
A) LBO
B) divestiture
C) acquisition
D) tender offer

Question

Quizplus · Accepted Answer

A divestiture is the opposite of a merger, as it involves the sale or disposal of a business unit or subsidiary. In a merger, two or more companies combine to form a larger entity, while in a divestiture, a company "unbundles" or separates a part of its operations to become a smaller entity. LBOs (leveraged buyouts), acquisitions, and tender offers all involve some form of buying or merging with another company, so they are not the reverse of a merger.

A(n) ______ Is the Reverse of a Merger