H.

K INSTITUTE OF MANAGEMENT
STUDIES AND RESEARCH

CORPORATE VALUATION
M&A

PRESENTING BY
SANA AFZAL SHAIKH (A38)

UNDER THE GUIDANCE OF

DR. PROF. NAVEEN SRIVASTAVA
 ALTERNATIVE BUSINESS
RESTRUCTURING STRATEGIES
WHAT IS BUSINESS RESTRUCTURING?

A business restructuring is a significant action

undertaken by a company in order to modify and
reshape its operations with the intention of reducing
debt, increasing efficiency, and improving the
business going forward.
 REASONS FOR BUSINESS RESTRUCTURING

Business restructuring takes place due to a business

needing to change as a result of financial issues. A
company will be struggling to maintain a consistent
monthly profit and begin to slide into debt, and before the
arrears become too large they will opt to look inwards and
restructure in order to reduce the debt.

this is not the only reason for corporate restructuring.

Other common causes of corporate restructuring are:

1. To prepare for a potential takeover

2. Preparing for a potential merge with another business
3. Change in ownership
TYPES OF BUSINESS RESTRUCTURING
1. FINANCIAL RESTRUCTURING

Financial restructuring will take place as a result of a

business experiencing financial difficulty. It is often the
process of reorganising the finances of a business, its equity,
debt, etc.

2. ORGANIZATIONAL RESTRUCTURING

An organization restructure is a change in a company's

business model, structure or processes. A restructuring can
involve changes to the workforce, reorganization of company
hierarchy or introducing new processes.
 ALTERNATIVE STRATEGIES FOR BUSINESS
RESTRUCTURING ARE

MERGERS AND ACQUISITIONS:

Mergers are the process where one company is purchased and

absorbed into another. Mergers and acquisitions are common strategies
used by companies struggling financially to find a viable way to keep the
business going. It is also common for mergers and acquisitions to be
used as a way for two companies to mutually grow and benefit from
each other’s industry position, to form one larger synergised operation.
 CONTINUE……
DEMERGER:

A demerger is an occasionally complicated process whereby a business

merger is deemed to not be working out as planned. This could be
because of an unforeseen clash of company culture, management egos,
or differing strategies. A demerger can also be a way to streamline a
company in preparation for a takeover. Both companies will agree to go
their separate ways.
 CONTINUE……

JOINT VENTURE:

In a joint venture, two or more parties will come together to

form a totally new, unique business venture. Both businesses
will share their resources and experience, and in turn split the
responsibility, expenses, and profits.
 CONTINUE……

STRATEGIC BUSINESS ALLIANCE:

A strategic alliance allows two or more businesses to come

together, pool their knowledge and resources together to a
shared goal, while remaining totally independent
organisations in their own right.