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…