Corporate Restructuring, Finance, Other Engineering

Corporate Restructuring

Corporate restructuring refers to the changes in ownership, business max, assets mix and alliances with a view to enhance the shareholder value. Hence, corporate restructuring may involve ownership restructuring, business restructuring and assets restructuring. A company can affect ownership restructuring through mergers and acquisitions, leveraged buy-outs buyback of share spin-offs, joint ventures and strategic alliances. Business restructuring involves the reorganization of business units or divisions. It includes diversification into new businesses, out-sourcing, divestment; brand acquisitions etc. asset restructuring involves the acquisition or sale of assets and their ownership structure. The examples of assets restructuring are sale and leaseback of assets, securitization of debt, receivable factoring etc.

The basic purpose of corporate restructuring is to enhance the shareholder value. A company should continuously veal-ate its portfolio of businesses, capital mix and ownership and assets arrangements to find opportunities for increasing the share-holder value. It should focus on assets utilization and profitable investment opportunities, and reorganize pr fives less profit-able or loss making business/products. The company can also enhance value through capital restructuring: it can design innovative securities that help to reduce cost of capital.

Our focus here is on mergers and acquisitions, leveraged buy-outs and divestment. We have discussed many other aspects of restructuring like buyback of shares, capital structuring etc. earlier in this book.
Posted Date: 2/1/2012 12:09:30 AM | Location : United States







Related Discussions:- Corporate Restructuring, Finance, Assignment Help, Ask Question on Corporate Restructuring, Finance, Get Answer, Expert's Help, Corporate Restructuring, Finance Discussions

Write discussion on Corporate Restructuring, Finance
Your posts are moderated
Related Questions
what things require for finance project on capital budgeting?

Engine fuel control systems: The thrust of a turbo jet is controlled by varying the amount of fuel that is burnt in the combustion system and in order to operate the safe tempe

Question: (a) Cellular systems are based on two main types of multiplexing, what are those two types of multiplexing? Explain how they are used to improve channel allocation in

Expertsmind.com brings you unique solution in electrical engineering -          Laws of Motion -          Speed is how much distance will be covered in a certain time.

matlab program for studying the characteristics of n channel enhancement type mosfet

Engine fires: There are two main types of engine fire that can occur when running gas turbine engines and they are dealt with in different ways. 1. Fire in the engine nacel

analyse modelling for safe home security system


Imaging Seekers  Although there are a wide variety of imaging sensors (cameras), the majority of modern aircraft systems are based on conventional TV camera technologies (al