Corporate Restructure  


Vijaya Laxmi
Eminent Member Admin
Joined:1 year  ago
Posts: 8
04/02/2018 1:40 pm  

Restructuring is the process of reorganizing a business. The term implies a major change as opposed to a subtle improvement. The following are common types of restructuring.


Mergers & Acquisitions

Integrating the administration, operations, technology and/or products of two firms.



Changing the legal structure of a firm such as ownership structure. For example, a business unit may become its own legal entity.



A change to a firm's capital structure such as a debt restructuring designed to allow a firm in financial distress to continue to operate.



Restructuring the administration, operations and products of an organization that is performing poorly. Often requires new leadership and a change to strategy and culture.



A strategy designed to move a firm or business unit to a new business or operational model. For example, a firm that sells software products that moves to a software services model.


Cost Restructuring

Cutting administrative and operational costs in response to a downturn or anticipated downturn in revenue or margins.



Selling or closing a business unit that is unprofitable, nonstrategic or problematic in some way.



Restructuring a business unit to be its own company while retaining some ownership. A spin-off is often done to seek a high valuation for an attractive part of a business.


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