Spin-Off: What It Is, Benefits
What is a Spin-Off? A parent company creates a spin-off division as an independent entity when it believes the spin-off will be more valuable on its own. Also known as a spinout or starburst, a spin-off occurs when the parent distributes shares of a subsidiary to its shareholders. This process is a form of divestiture. […]
Australian Mining Company Expands Overseas
Australia’s mining industry has long been a cornerstone of the national economy, driving significant economic growth and providing thousands of jobs. However, as the global landscape of mining evolves, Australian miners are increasingly looking beyond their borders for new opportunities. Setting up operations in another country presents both challenges and opportunities for these firms. One […]
Suspended Trading: What It Is, Example
What is Suspended Trading? The Australian Securities Exchange (ASX) is a critical platform for companies looking to raise capital and gain visibility in the financial markets. For Australian firms, a listing on the ASX offers numerous advantages, but there are times when a company may choose to suspend trading of its shares. Suspended trading occurs […]
Chief Security Officer (CSO): What It Is, Responsibilities
What is a Chief Security Officer (CSO)? The Chief Security Officer (CSO) is a company executive tasked with safeguarding both physical and digital assets. This role encompasses securing personnel, physical property, and information. CSOs handle online safety protocols, risk management, and incident response. With the rise of hacking, ransomware, and data theft, their role has […]
Management Buyout (MBO): What It Is, How It Works
What is a Management Buyout (MBO)? A management buyout (MBO) is a financial transaction where a member of a company’s management team purchases the business from its current owner(s). In this scenario, management acquires the entire business, including its assets and operations. MBOs are attractive to managers because ownership offers greater control and potential rewards […]
Strategic Growth Through Acquisition and Rebranding
In a competitive business environment, strategic moves such as buying out a divested company and rebranding it can offer significant opportunities for growth and market repositioning. This blog explores the process and benefits of acquiring a company division that a parent firm wishes to divest and the subsequent rebranding efforts, with a particular focus on […]
Reputational Risk: What It Is, Dangers, Causes
What is Reputational Risk? Reputational risk is a threat to a business’s good name or standing. It can arise in several ways: Key points: Understanding Reputational Risk Reputational risk is a hidden danger that can threaten the survival of even the largest and best-run companies. While often resulting in outcomes that are difficult to measure, […]
BNPL Provider Collapses, Impacting Users Globally
The buy now, pay later (BNPL) sector has revolutionised the way consumers shop and manage their finances. However, the rapid growth of this sector has not been without its challenges. Some BNPL services have found themselves in financial distress, leading to voluntary administration or receivership. A recent example of this is Laybuy, a once-prominent BNPL […]
The Shift from Coal to Renewables and the Case of Eraring Power Station
The energy landscape in Australia is undergoing a significant transformation as the country shifts from coal-fired power plants to renewable energy sources. This transition is crucial for achieving environmental sustainability and reducing carbon emissions. One notable example is Origin Energy’s plan to shut down the Eraring Power Station, the country’s largest coal-fired power plant. This […]
Voluntary Administration: The Role of a Voluntary Administrator
A voluntary administrator plays a pivotal role in voluntary administration which offers struggling businesses a chance to restructure and potentially return to profitability. This article explores the reasons behind such decisions, with a specific look at why administrators, including those from Deloitte Australia, may distance themselves from certain cases, such as the ongoing woes of […]
Bankruptcy Risk: What it is, How it Works
What is Bankruptcy Risk? Bankruptcy risk, also known as insolvency risk, represents the likelihood that a company will fail to meet its debt obligations, leading to insolvency. This risk reflects the probability that a firm will become unable to service its debt, which can affect investment decisions. Investors often evaluate a company’s bankruptcy risk before […]
Business Interruption Insurance: What It Is, How It Works
What is Business Interruption Insurance? Business interruption insurance is coverage that replaces business income lost due to a disaster, such as a fire or a natural disaster. It is not sold as a separate policy but is typically added to a property/casualty policy or included in a comprehensive package policy as an add-on or rider. […]
