LAB International (LAB) has two divisions that have significantly different strategies. The research and development department has a high amount of hazard and a continuing need for funding, while the contract research division is a cash generator and is less risky.
LAB International Inc. Case Study Solution
LABORATORY is trying to raise additional capital but considers the shares of the business are undervalued in the marketplace. It is chewing over a spinoff of one of the departments to raise the resources and to make each business more of a pure play and consequently to reach a market valuation that is more suitable. Pupils must assess the values of this strategy and place a value on the spinoff.
PUBLICATION DATE: April 20, 2009 PRODUCT #: 909N11-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
