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  • Corporate Restructuring

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    Minal Dalvi
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    Corporate restructuring is defined as a change in a company's capital structure, ownership structure, or control over management that is outside the normal course of business. It can also involve changing a company's business capacity or portfolio through inorganic means. Common reasons for restructuring include increased competition, new technologies, changing markets, business cycles, and achieving economies of scale or synergies. Forms of restructuring include mergers, acquisitions, divestitures, demergers, joint ventures, reducing capital, and buying back or delisting securities.

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    Corporate Restructuring

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    Corporate restructuring is defined as a change in a company's capital structure, ownership structure, or control over management that is outside the normal course of business. It can also involve changing a company's business capacity or portfolio through inorganic means. Common reasons for restructuring include increased competition, new technologies, changing markets, business cycles, and achieving economies of scale or synergies. Forms of restructuring include mergers, acquisitions, divestitures, demergers, joint ventures, reducing capital, and buying back or delisting securities.

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    © All Rights Reserved
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    20 views1 page

    Corporate Restructuring

    Uploaded by

    Minal Dalvi
    Corporate restructuring is defined as a change in a company's capital structure, ownership structure, or control over management that is outside the normal course of business. It can also involve changing a company's business capacity or portfolio through inorganic means. Common reasons for restructuring include increased competition, new technologies, changing markets, business cycles, and achieving economies of scale or synergies. Forms of restructuring include mergers, acquisitions, divestitures, demergers, joint ventures, reducing capital, and buying back or delisting securities.

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    CORPORATE RESTRUCTURING

    MEANING

    DEFINITION
    a. A change in the capital structure that is not in the ordinary course of the business or
    b. Change in the ownership structure or control over management or
    c. Change in the business capacity or portfolio by an inorganic route.

    Why Corporate restructuring?

    Nothing is permanent except change.

    What could be the reasons for change?


    Increased competition,
    Advent of a new & more efficient technology,
    Emergence of competing products
    Emergence of new markets/ new class of consumers
    Demographic changes
    Business cycles, etc
    To achieve economies of scale /scope.
    Toavailtaxbenefits.
    Toachievesynergy
    To increase market share /revenue.
    Activities which are not termed as corporate restructuring:

    Initial creation of corporation.


    Change in internal command structure or hierarchy
    Change in the business process.
    Downsizing
    Outsourcing, ERP, TQM, Franchising, Networking, Licensing.

    Forms of Corporate Restructuring


    1. Merger
    2. Consolidation
    3. Acquisition
    4. Divestiture
    5. Demerger
    6. Carve out
    7. Joint venture
    8. Reduction of capital
    9. Buy- back of securities
    10. Delisting of securities/ Company.

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