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

Transistor configurations, TRANSISTOR CONFIGURATIONS: Before a transist...

TRANSISTOR CONFIGURATIONS: Before a transistor can be used, it must be connected into an input circuit (by two wires) and an output circuit (two wires).  However, because the t

Engineering physics, Consider a conical pendulum with a bob of mass m=80kg ...

Consider a conical pendulum with a bob of mass m=80kg on a string of length L=10 m that makes an angle of 5 deg. with the vertical. Determine the horizontal and vertical component

Bay cooling in aircraft, Bay cooling in Aircraft: There are two methods...

Bay cooling in Aircraft: There are two methods of bay cooling, they are: • Ram air cooling • Fan air cooling RAM AIR COOLING For ram air cooling, the aircraft has to

Company Acquisition and Takeover vs acquisition , Company Acquisition, Take...

Company Acquisition, Takeover vs acquisition and holding copany A fundamental characteristic of merger (either through absorption or consolidation) is that the acquiring or amalg

Irr, How do you calculate IRR

How do you calculate IRR

Shell-mould casting, Shell-mould Casting is variant of the resin bonded sa...

Shell-mould Casting is variant of the resin bonded sand technique for casting steel, iron or non-ferrous alloys. The mould is made by a mixture of fine sand (100 - 150 mesh) an

Public health eng, Design a sewer collection system incorporating flow rate...

Design a sewer collection system incorporating flow rates, pipe sizes and pipe slopes for the proposed residential development shown in the attached drawing. In your design, locat

Risk Analysis, how would I find assistance with such toics as: probability ...

how would I find assistance with such toics as: probability assessment methods, risk modeling, stochatic dominance and multi-attribute methods?

Changes in temperature and pressure-aircraft maintenance, Changes in temper...

Changes in temperature and pressure: The changes in temperature and pressure of the gases through a gas turbine engine are illustrated in Figure 1.5 The efficiency with which t

machine molding, Machine molding is suitable for the faster and uniform qu...

Machine molding is suitable for the faster and uniform quality moulds, needed for mass production of castings. For preparing the moulds, various moulding machines are used. Majorit

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