Clients typically rely on our corporate restructuring services if they experience deteriorating performance, have liquidity concerns, or have experienced the loss of key management or customers. In each case, we have the skills to manage international restructuring, whilst also expertly managing relations with trade unions and other labour representatives. We lead corporate boards and all other stakeholders through restructuring plans. These plans include downsizing, outsourcing, moving key functions to other countries and both the acquisition of businesses and their sale.
basic concepts of corporate restructuring (1) – SlideShare
Operational restructuring Workforce reduction Joint venture / Strategic alliance Merger/ Consolidation Takeover Acquisition of stock Acquisition of assets Corporate restructuring Leveraged Recapitalization Recapitalization Dual Class Recapitalization Share repurchase Exchange Offer Financial …
What is Corporate Restructuring? definition and meaning
Definition: The Corporate Restructuring is the process of making changes in the composition of a firm’s one or more business portfolios in order to have a more profitable enterprise. Simply, reorganizing the structure of the organization to fetch more profits from its operations or is best suited to the present situation.
The Corporate Restructuring takes place in two forms:
Financial Restructuring: The Financial Restructuring may take place due to a drastic fall in the sales because of the adverse economic conditions. Here, the firm may change the equity pattern, cross-holding pattern, debt-servicing schedule and the equity holdings. All this is done to sustain the profitability of the firm and sustain in the market. Generally, the financial or legal advisors are hired to assist the firms in the negotiations.
Organizational Restructuring: The Organizational Restructuring means changing the structure of an organization, such as reducing the hierarchical levels, downsizing the employees, redesigning the job positions and changing the reporting relationships. This is done to cut the cost and pay off the outstanding debt to continue with the business operations in some manner.
The need for a corporate restructuring arises because of the change in company’s ownership structure due to a merger or takeover, adverse economic conditions, adverse changes in business such as bankruptcy or buyouts, over employed personnel, lack of integration between the divisions, etc.
Corporate restructuring becomes a buzzword during economic downturns. A company going through tough financial scenario needs to understand the process of corporate restructuring thoroughly. Although restructuring is a generic word for any changes in the company, this word is generally associated with financial troubles. Corporate restructuring is a corporate action taken to significantly modify the structure or the operations of the company. This usually happens when a company is facing significant problems and is in financial jeopardy. Often, the restructuring is referred to the ways to reduce the size of the company and make it small. Corporate restructuring is essential to eliminate all the financial troubles and improve the performance of the company.
The troubled company’s management hires legal and financial experts to assist and advise in the negotiations and the transaction deals. The company can go as far as appointing a new CEO specifically for making the controversial and difficult decisions to save or restructure the company. Generally, the company may look at debt financing, operations reduction and sale of the company’s portions to interested investors
Corporate Restructuring; Concept, Approach, and Strategies
The chapter analyses approaches to Corporate Restructuring (CORE). The systematic approach to restructuring involves the business portfolio, technical, financial, and organizational restructuring. CORE initiatives in order to be successful need to look at both the volume of restructuring and the strategy for restructuring. Some effective approaches in this regard have been discussed.
Corporate Restructuring, Mergers & Acquisitions – KPO Companies
Corporate Restructuring is the process of redesigning one or more aspects of a company. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a curre ntly adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction. Before restructuring there must be an existing structure which may have many limitations/restrictions such as finance, legal, business and management which are to be kept in mind before restructuring. In other words, restructuring could be considered as making alterations to some extent to the existing structure. Corporate Restructuring may have a single objective or multiple objective s; amongst them, there must be a dominant objective in addition to other important objectives for a successful corporate restructuring. Hence, Corporate Restructuring is a comprehensive process by which a company can consolidate its business operations and strengthen its position for achieving its shortterm and long term corporate objectives. Corporate Restructuring is vital for the survival of a company in a competitive environment. Process for Corporate Restructuring While looking at the concept of Corporate restructuring, there is process to make it successful in achieving its stated objectives. For that a company must understand the objectives which are to be achieved and put forward the options or their opinions to achieve them. On selecting the appropriate option, a company can execute the same.