CORPORATE RESTRUTURING

BY: SACHIN
SOMVANSHI
 Meaning of Corporate Restructuring
 Corporate restructuring is the process of
reorganizing a company's operations and
finances to increase efficiency, reduce costs,
and improve profitability.
 It often involves changes to the organizational
structure, such as downsizing, merging
departments, and outsourcing certain tasks.
 Corporate Restructuring
forms
 Ownership Restructuring-A company can affect ownership restructuring

by Mergers and Acquisitions and Leverage Buy outs, Buy back of shares,

Joint Ventures etc

 Asset Restructuring-It involves acquisition or sale of assets and there

ownership structure.eg sale and Leaseback of assets, Factoring etc.

 Reorganization of share capital-Under this rights of shareholders and/ or

creditors changed .Generally in difficulty company resorts to such

reconstruction
 Types of Corporate
Restructuring
There are several different types of corporate restructuring, including
mergers and acquisitions, spin-offs, divestitures, and downsizing.
The type of restructuring chosen will depend on the company's goals
and the current market conditions.
Mergers- Merger is said to occur when two or more companies combine
in to one company. (1).Amalgamation (2) Absorption
Takeovers or Acquisitions-Takeovers/Acquisitions may be defined as an
act of acquiring effective control over assets or Management of a company
by another company without any combination of businesses or companies.
 Types of Corporate
Restructuring
 Purchase of a unit or Plant

A company acquires division or plant of another company and

compensation is paid in cash usually for eg. Abbot laboratories
acquired pharmaceutical business of piramal healthcare for 3.72
billion dollar.

 Joint venture-In a joint venture, two companies enter into an

agreement to provide certain resource for achieving particular
common business goal
 Benefits of Corporate
Restructuring
Restructuring can help a company become more competitive by
streamlining operations and cutting costs.
 Restructuring can also help to improve morale and create a more
positive work environment.
By focusing on core competencies and eliminating non-essential
tasks, a company can become more efficient and better able to
adapt to changes in the market.
Increased efficiency and communication – restructuring often gets
rid of non-essential layers in the management chain.
 Conclusion
Corporate restructuring can be a complex and
challenging process, but it can also be beneficial for a
company if done correctly.
It is important to create a detailed plan and to ensure that
all stakeholders are considered.
By focusing on core competencies and eliminating non-
essential tasks, a company can become more efficient and
better able to adapt to changes in the market.
 CORPORATE
RESTRUCTURING ACTIVITIES
Protection of national heritage, art and culture
2. Establishing Public Libraries
3. Traditional art and handicraft development and promotion
4. Measures for the benefit of armed forces veterans, war widows and their dependents
5. Training to promote rural sports, nationally recognized sports, Paralympic sports and
Olympic sports.
6. Contributions or funds provided to technology incubators located within academic
institutions which are approved by the Central Government
7. Eradication of Hunger
8. Poverty and Malnutrition
9. Promoting health care and sanitation