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
soil and water and irrigational projects

Thermoelectric effect The measurement of temperature using a thermocouple relies on Seebeck effect. The electrons occupy different energy levels in different materials

Do you provide help with Autocad assignments?

Operations invending in chain survey

What are the no-arbitrage lower bound, and the no-arbitrage upper bound, of the vertical spread C(k1) - C(k2) ?

Chemical Engineering The research about thermoset polymer products. For example Polyimide Film Thermosetting and Pressure-Sensitive Adhesive Tape.

Difference Between Fin and Swell          Swell : The unintentional bulges found on the casting surfaces are known as swells. Such enlargements on the casting surface are cau

How do comets get their tails? - Most comets stay frozen in the outer solar system. Only a few enter the inner solar system where they can grow tails. - When a comet nears the sun

The IITRI test is widely used to measure the compressive properties of composites. The specimen is rectangular with aluminium end tabs bonded to protect against the gripping actio