Publication year: 2018

Abstract:

The Honorable high court of Punjab and Haryana approved the spin-off of Max India on its order dated December 14th, 2015. The company distinguished its business into three different parts as a result of its corporate reformation activity. Though Mergers & Acquisitions (M&A) are widely accepted corporate restructuring activity among the corporate entities, the role of demerger in this concept cannot be avoidable. In this competitive era, where M&A has been acting as a most preferred alternative for the growth and development of companies, demerging of Max India is how much justifying is a very much discussable topic. Is the spin-off achieved its anticipated synergies? Can it be treated as a successful spin-off? Is it beneficial for the company along with its shareholders?

Pedagogical Objectives:

  • To understand the basic structure of Max India in the pre and post spin-off period
  • To understand the reason behind the spin-off of Max India
  • To determine the post-demerger period of the separate entities

Case Positioning and Setting:

This case is designed to be taught in the subjects like Corporate Restructuring, strategic management and Mergers, and Acquisitions. Teachers of BBA, MBA, Executive MBA, and Commerce may use this case for their classroom teaching to improve the analytical skill of their students.

 

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