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S T R A T E G I E S

O F M & A
Strategies for Restructuring

Hardware Restructuring Software Restructuring


• When the structure of the • It involves the cultural and
organization is redefined or process change to establish
modified collaborative environment
• Identifying core competencies • Open and transparent
• Flattening the organizational layer communication
• Downsizing • Build a culture of guidance
• Creating self directed teams • Build an environment of trust
• Benchmarking against the toughest • Raising the aspiration level
competitors • Encouraging decentralizes decision
making
• Working on T&D
• The strategies adopted are
expected to lead the following
result
• Improve operation

Strategic • Alter the relative strength of the


organization to face competition

options in CR • Facilitate creation of competitive


advantage
• Provide better customer satisfaction
• Generate profit in free market
• Differentiate themselves from
competitors
• Delivers value to the customer
Strategic options for CR

Cost leadership Capacity


Mergers Takeover Hiving off
Strategic option for CR

options expansion

Product excellence
Strategic alliance Collaborations JVs
options

SWOT options Diversification Globalization splits

Assets Sell-offs
Acquisitions
reorganization /Divestiture

New ownership
Spin off & split offs Equity carveout Targeted stocks
relationship
Strategic options for CR
Exchange offers Liquidation
Strategic option for CR
Reorganization Financial
financial claims reorganization
Dual class stock Leveraged
recapitalization recapitalization
Cash
Incentives for SH
disgorgement

Other options ESOPs

Elimination of
MLPs & LBOs
Cross subsidies

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