Cash management good read. Alternatives to weigh that may have long term ramifications.
Excerpt: “Financing Through Asset Sales” probes the choice to issue equity or sell non-core assets such as a division or a plant. As a means of raising cash, under what conditions are asset sales or equity issues likely to add more value? Edmans, a Wharton finance professor and a faculty research fellow at the National Bureau of Economic Research, and Mann, a Wharton PhD candidate, have an answer.
They propose three forces behind decisions to sell equity or sell non-core assets, which they call the camouflage, correlation and certainty effects.