C O R P O R AT E

RESTRUCTURE
TECHNIQUES

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C O R P O R AT E R E S T R U C T U R I N G

Corporate Restructuring is the

process of redesigning one or more
aspects of a company

P R E S E N TAT I O N T I T L E
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C O R P O R AT E
RESTRUCTURING
TECHNIQUES
MERGERS AND
ACQUISITIONS
COMPANIES CAN MERGE WITH OR
ACQUIRE OTHER COMPANIES IN ORDER
TO EXPAND THEIR MARKET SHARE OR
DIVERSIFY THEIR PRODUCT
OFFERINGS.
DIVESTITURES
COMPANIES CAN SELL OFF NON-CORE
ASSETS OR DIVISIONS IN ORDER TO
FOCUS ON THEIR CORE BUSINESS
OPERATIONS.
JOINT
VENTURES
COMPANIES CAN ENTER INTO JOINT
VENTURES WITH OTHER COMPANIES IN
ORDER TO SHARE RESOURCES AND
EXPERTISE.
C O N S O L I DAT I O N
CONSOLIDATION HAPPENS WHEN TWO
OR MORE COMPANIES MERGE TO
BECOME ONE. ALSO KNOWN AS
AMALGAMATION, BUSINESS
CONSOLIDATION IS MOST OFTEN
ASSOCIATED WITH M&A ACTIVITY.
C O R P O R AT E
CARVE-OUT
CORPORATE CARVE-OUT, ALSO KNOWN AS
A BUSINESS CARVE-OUT OR DIVESTITURE,
IS A STRATEGIC PROCESS IN WHICH A
COMPANY DECIDES TO SELL OR SEPARATE
A SPECIFIC SEGMENT, BUSINESS UNIT, OR
SUBSIDIARY FROM ITS OVERALL
OPERATIONS.
DEMERGER
A DEMERGER ALSO KNOWN AS A SPIN-OFF,
IS A RESTRUCTURING MECHANISM WHERE
A CORPORATE ENTITY IS SPLIT INTO
SEPARATE PARTS WHICH BECOME NEW
LEGAL ENTITIES. THE LEGAL ENTITIES
FORM THEIR OWN SEPARATE IDENTITY
WITH THEIR DISTINCT ASSETS,
LIABILITIES, AND FUNCTIONS
C A P I TA L
REDUCTION
THE PROCESS OF DECREASING THE
COMPANY’S SHAREHOLDING EQUITY
WITH THE HELP OF SHARE
CANCELLATIONS AND SHARE
REPURCHASES IS DEFINED AS CAPITAL
REDUCTION. THIS IS GENERALLY DONE IN
CASES OF MERGERS AND ACQUISITIONS,
RESTRUCTURING, INTERNAL
RECONSTRUCTION, INCREASING
DELISTING
DELISTING IS THE REMOVAL OF A LISTED
SECURITY FROM A STOCK EXCHANGE. THE
DELISTING OF A SECURITY CAN BE
VOLUNTARY OR INVOLUNTARY AND
USUALLY RESULTS WHEN A COMPANY
CEASES OPERATIONS, DECLARES
BANKRUPTCY, MERGES, DOES NOT MEET
LISTING REQUIREMENTS, OR SEEKS TO
BECOME PRIVATE.
T H A N K YO U

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