Downscoping generally leads to more positive outcomes than leveraged buyouts both in the long term and the short term.

Question

Quizplus · Accepted Answer

Downscoping involves divesting or spinning off non-core business units, which can lead to improved financial performance, increased focus on core competencies, and reduced risk exposure. Leveraged buyouts, on the other hand, involve taking on significant debt to finance the acquisition of a company, which can lead to high levels of debt that impede growth and competitiveness. Therefore, downscoping generally leads to more positive outcomes than leveraged buyouts.

Downscoping Generally Leads to More Positive Outcomes Than Leveraged Buyouts