How to Sell a (Bankrupt) Company

Francesca Cornelli, Leonardo Felli*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


This paper suggests a way to sell a company that maximizes the proceeds from the sale. The key to this proposal is the option left to the seller to retain a fraction of the shares of the company. Indeed, by retaining the minority stake, the seller can transfer the control of the company while reducing to a minimum the rents that the sale of the company leaves in the hands of the buyer. We then focus on two main applications of this idea: bankruptcy procedures and carve-outs.

Original languageEnglish (US)
Pages (from-to)197-226
Number of pages30
JournalInternational Review of Finance
Issue number2
StatePublished - Jun 2012

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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