Open AccessCorporate Acquisition Through Bankruptcy Auctions
Author(s) -
Ted Azarmi,
Christine Haecker
Publication year - 2011
Publication title -
the international business and economic research journal/the international business and economics research journal
Language(s) - English
Resource type - Journals
eISSN - 2157-9393
pISSN - 1535-0754
DOI - 10.19030/iber.v2i1.3753
Subject(s) - bankruptcy , common value auction , bidding , equity (law) , business , industrial organization , process (computing) , microeconomics , finance , economics , marketing , computer science , political science , law , operating system
The objective of this case is to teach and initiate a class discussion about how to find potential buyers for a bankrupt firm. The discussion is facilitated by a real world case example that focuses on strategies based on use of databases such as D&B or Sorkins, trade associations networks, trade magazines, information on recent industry acquisitions, and use of private equity groups. Issues relevant to optimal design of a bankruptcy auction and the required bidding process for achieving an optimal sale price are also addressed.