Corporate Restructuring, Finance, Other Engineering

Assignment Help:
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.

Related Discussions:- Corporate Restructuring, Finance

Integrated circuits, Integrated circuits: Integrated circuits, or IC's,...

Integrated circuits: Integrated circuits, or IC's, have changed the entire electronics industry. Before IC's were developed, all electronic circuits consisted of individual (d

Define demat account?, Define Demat Account? What is the use of it? Dema...

Define Demat Account? What is the use of it? Demat indicates Dematerialization of reveal, in easy it is an consideration with which a individual can business in protection indus

Basic instrumentation system, A basic instrumentation system consists of a ...

A basic instrumentation system consists of a transducer, conditioning amplifier, and analog digital converter connected (in general) by analog and digital transmission lines.

Mine engineering, Students are to undertake a tunnel blast design for the f...

Students are to undertake a tunnel blast design for the following conditions: • Tunnel is 5.5m wide by 5.5.m high • Rock is a sandstone with a UCS of 400 MPa • Drill hole diameter

Skin-core debonding in sandwich structures, If the skins are peeled from th...

If the skins are peeled from the core, a sandwich structure loses its strength and stiffness. This can occur under - wave-slamming in fast ferries - rapid depressurisati

System dynamics , System Dynamics  Crucial to the development of a guid...

System Dynamics  Crucial to the development of a guidance system is an understanding of the dynamics of the system. In particular, it is necessary to understand how the acceler

Tin smelting, How can calculate for charging of tin smelting with reverbera...

How can calculate for charging of tin smelting with reverberatory furnaces?

FISICA, EL DESPLAZAMEINTO DE UNA PARTICULA ESTA DADO POR S=(-2+3T)e¨-0.5t

EL DESPLAZAMEINTO DE UNA PARTICULA ESTA DADO POR S=(-2+3T)e¨-0.5t

Cash mangement, how to do a cash management project report ,including probl...

how to do a cash management project report ,including problems?example?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd