FINANCIAL

RE-ENGINEERING

AUTHORS
B.Sushma
D.Swapna
From
Arjun college of technology and sciences
 TABLE OF CONTENTS
• What is Re-Engineering
• Financial Re-Engineering
• Objectives of Financial Re-Engineering
• Various forms of Financial
Re-Engineering
• Merger and Acquisition
• The Deal
• Risk Associated
 What is Re-Engineering?
Re-Engineering is the radical
redesign of business processes
and organisational structure in order to
achieve significant improvements in
performance,such as productivity,cost
reduction,cycletime and quality.
 Financial Re-Engineering
Financial Re-Engineering is the
recementing or changing of products,
systems,people,brands and technology which
has to be done with financial restructuring and
financial requantification of every qualitative
business variable.
 Objectives of Financial
Re-Engineering
• Facilitation of the new budget frame work.
• Identification,review and improvement of key
process controls.
• Improve the efficiency and accuracy of
financial data.
• Reduce the number of cost centers.
• Provide more useful and reliable information
for decision making
 Various Forms of Financial
Re-Engineering

1.Financial Restructuring
2.Corporate Restructuring
 Mergers
 Acquisitions
 Mergers and Acquisition
 A transaction where two firms agree to
integrate their operations on a relatively
coequal basis.

A transaction where one firm buys another

firm with the intent of more effectively
using a core competence by making the
acquried firm.
 The Deal
Arcelor has merged with
mittal about $24.5 billion, formed a new
company with total production of 117.2 million
tones of steel.
Hindalco has acquired novelis in
an all cash transaction at approximately US$6
billion including approximately US$2.40 billion
of debt.
 Risk Associated
• Mittal quality in the product is low.
• Arcelor is 2nd world largest in terms of output.
• Novelis has a high amount of debt.
• Hindalco will gain but Novelis will be at a
loss.
• Hindalco is getting a ready made market.
• The preformance of two companies may be
completely opposite to each other.
 Conclusion
Financial Re-Engineering helps the
companies in many ways like:
• Increases the growth of the company.
• All ready spread in the market.
• Getting high standards.
• Increases the brand value to the existing

product.
• Appreciation in the share value.
 References
• WWW.Google.Com.
• www.scribd.com › Presentations › Research
• www.scribd.com › Business & Law › Finance
• peje.wikispaces.com/file/view/
Financial+Reengineering.pdf
• www.financialexpress.com/.../financial
reengineering/38529/ - United States
Thank you