Cyclical -- Or Ripple Effect of 2008?
The number and complexity of corporate events persist, even three years after the 2008 financial crisis. The increase in spin-offs may purely be cyclical, as companies go from an increase in merger activity to more divestments that unlock shareholder value in separate businesses, said John Kareken, senior tax analyst at Wolters Kluwer Financial Services. On the other hand, the number and complexity of corporate events, especially rights offerings, may indicate continued challenges resulting from the 2008 financial crisis, as companies look for ways to raise capital and restructure, or the need to reconfigure their businesses to meet current economic conditions.
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