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Corporate Restructuring
Presented by - Chintan Desai
Nayana Mahajan
Rohit Nair
Corporate Restructuring
Corporate restructuring refers to the changes in
ownership, business mix, assets mix and alliances with a
view to enhance the shareholder value. Hence,
corporate restructuring may involve ownership
restructuring, business restructuring and assets
restructuring.
Types of Restructuring
Joint
ventures
Demerger
Acquisition
Merger
Merger
Combining of 2 or more commercial organization into one
in order to increase efficiency and sometimes to avoid
competition.
Reverse Merger
As a commercial term, it means when a healthy company
is merging with a weak company.
Demerger
Division of a company with two or more identifiable
business units into two or more separate companies
Acquisition
It defines acquiring the control over management or assets
of other company without any merging of the company.
Joint ventures
Two or more companies combine for contributing equity
capital to the new company.
Advantages :
Reduce
Costs
Shareholder
value Communication &
Decision making
New avenue
of growth
Disadvantages :
Talent
Management
Materialistic Resistance
Cost of
restructure
Change in company attitude:
Strategy
Technology People
Structure
Key aspects:
Appointing a restructuring leadership team
Communicating the vision
Communicating why and what
Giving support and skills
to get succeed
Key aspects:
Engaging employees
Shaping the culture
Handling complicated decisions
Keeping right people
Celebrating the success
Thank you…