CIMA Financial Strategy F3 Question # 84 Topic 9 Discussion

CIMA Financial Strategy F3 Question # 84 Topic 9 Discussion

F3 Exam Topic 9 Question 84 Discussion:
Question #: 84
Topic #: 9

A company is considering a divestment via either a management buyout (MBO) or sale to a private equity purchaser. Which of the following is an argument in favour of the MBO from the viewpoint of the original company?


A.

Better co-operation post divestment.


B.

Enhanced big data opportunities.


C.

Improved relationships with management buyout team in the event of a sale to the private equity purchaser.


D.

Higher price due to synergistic benefits.


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