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Cont..
Companies are dramatically restructuring their:
Assets
Operations
Relationship with stakeholders
Corporate restructuring facilitates organizations
to re-establish their competitive advantage
and respond more quickly and effectively to
new
opportunities
and
unexpected
challenges.
Why Corporate
Restructuring?
However, not all the changes that a
company undergoes would qualify to
be termed as
corporate
restructuring.
Corporate Restructuring
Definition
Any change in the business capacity or
portfolio that is carried out by an
inorganic route
Or
Any change in the capital structure of a
company that is not a part of its ordinary
course of business
Or
Any change in the ownership of or control
over the management of the company or a
combination of any two or all of the above
companys
own
business
activity,
while
Cont..
Inorganic growthis the rate of growth
ofbusiness, sales expansion etc. by increasing
output and business reach by acquiring new
businesses by way ofmergers,acquisitions and
takeovers.
This kind of growth also takes place due to
government directives, leading to enhancement
of business in some identified priority
sector/area.
The inorganic growth rate also factors in the
impact of foreign exchange movements or
performance of other economies.
Corporate Restructuring
I.
were
launched
from
Tata
Motors
own
Jaguar
Land
Rover
Limited
is
corporate
restructuring
Cont..
(b) Change in the business portfolio could
also be in the nature of reduction of
business handled by a company
Cont
II.
Cont..
III.
Merger
Consolidation
Acquisition
Divestiture
Demerger (spin off/split up/split off)
Carve Out
Joint Venture
Reduction of Capital
Buy-back of Securities
Delisting of Securities/Company
Corporate Debt Restructuring
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