C O R P O R AT E

RESTRUCTURING
MEANING AND FORMS OF RESTRUCTURING

PRESENTED BY -SHRUTI PALAV (333)

 When a company wants to grow or survive
01 in a competitive environment, it needs to
restructure itself and focus on its
INTRODUCTIO

competitive advantage.

Corporate Restructuring or rebuilding is a

02
move made by the corporate element to alter
N

fundamentally either its capital structure or

its tasks.

Corporate Restructuring focuses on cost

03
reduction and improving efficiency and
profitability.
 •Merger:
This is where at least two business elements are combined either by method
01
for ingestion or amalgamation or by the framing of another organization. The
merger of at least two business substances is commonly done by the trade
of protections between the procuring and the objective organization.
RESTRUCTURING

•Demerger:
FORMS OF

02 Under this corporate rebuilding procedure, at least two

organizations are joined into a solitary
organization to get the advantage of cooperative energy
emerging out of such a merger

•Turn around Merger:

03 In this procedure, the unlisted open organizations have the chance to
change over into a recorded open organization, without deciding on IPO
(Initial Public offer). In this procedure, the privately-owned business
procures a greater part of shareholding in the open organization
with its name
 •Disinvestment:
01 When a corporate element sells out or exchanges a benefit or auxiliary, it is known as
"divestiture".

•Takeover/Acquisition:
02 Under this methodology, the obtaining organization assumes, generally speaking,
the responsibility for the objective organization. It is otherwise called “Acquisition

•Strategic Alliance:
03 Under this technique, at least two substances go into consent to team up
with one another, to accomplish certain destinations while as themselves
going about as free associations.

•Joint Venture (JV):

04 Under this methodology, a substance is framed by at least two organizations to embrace budgetary acts together. The
resultant substance is known as the ‘Joint Venture’. Both the gatherings consent to contribute in extent as agreed to
shape another substance and furthermore share the costs, incomes, and control of the organization

•Slump Sale:
05 Under this system, an element moves at least one endeavour for a single amount thought. Under Slump Sale, an
endeavor is sold for a thought, independent of the individual‘s estimations of the benefits or liabilities of the
endeavor in other words without any values being taken into consideration about the individual assets and
liabilities.
CASE STUDY : RELIANCE INDUSTRIES LTD
 Identifying

PROCESS
potential
targets:

Due
Diligence
Integration

PROCESS
Business
Valuation
Executing
the deal
Planning
 CONCLUSION
 The corporate restructuring allows the company to continue to operate in some way.

 The management of the company tries all the possible measures to keep the entity going on.

 Even when the worst happens and the company is forced to pieces because of the financial troubles, the
hope remains that the divested pieces can function good enough for a buyer to acquire the diminished
company and take it back to profitability.

THANK YOU