coporate restructuring ppt

1. 1
Corporate
Restructuring

2. 2
Meaning of Corporate
Restructuring
Corporate restructuring is the fundamental change in the
company’s business or financial structure with the motive of
increasing the company’s value to shareholders.
Hence, it is a comprehensive process by which a company can
consolidate its business operations and strengthen its position
for achieving its short term and long term corporate objectives.

3. 3
Corporate Restructuring as per Collins English
Dictionary, means a change in the business
strategy of an organisation resulting in
diversification, closing parts of the business etc, to
increase its long term profitability.

4. 4
Need and objectives of
corporate restructuring
Improve the competitive position
Achieve economies of large scale operations
Achieve cost reduction
Access to better technology
focus on core strengths
Revive or rehabilitate a sick unit
Assure constant supply of resources
Utilise tax benefits

5. Improve corporate performance
Use of synergies and value additions
To become globally competitive and eliminate
competition
Rearrange the firm’s activities in more efficient and
profitable manner
5

6. Areas of Corporate Restructuring
6
Corporate
Restructuring
Financial
Restructuring
Operational
Restructuring
Managerial
Restructuring
Asset
Restructuring

7. 7
Techniques of Corporate
Restructuring
Techniques
Expansion Contraction Others

8. 8
Expansion Techniques
a) Mergers
b) Takeover
c) Strategic Alliance
d) Joint venture
e) Franchising
f) Licensing
g) Wholly owned subsidiaries

9. 9
Contraction Techniques
 Demerger/ spin-off
 Disinvestment
 Slump sale
 Buy-out
 Leveraged Buy-out
 Sell-off

10. 10
Other Techniques
 Reverse Merger
 Debt-Equity swaps
 Buy back of shares
 Asset Securitisation