mangement

1. SUB: CORPORATE FINANCE
TOPIC: CORPORATE RESTRUCTURING
- BY NANJEGOWDA N S
- 2ND YEAR MBA,DEPT. OF MBA
- TUMKUR UNIVERSITY

2. WHAT IS CORPORATE RESTRUCTURING?
• • Corporate Restructuring is the process of redesigning one or more aspects of a
company.
• The process of reorganizing a company may be implemented due to a number of
different factors, such as positioning the company to be more competitive, surviving
a currently adverse economic climate, or acting on the self confidence of the
corporation to move in an entirely new direction.

3. WHAT IS CORPORATE RESTRUCTURING?
Any change in a company’s:
1. Capital structure,
2. Operations, or
3. Ownership
that is outside its ordinary course of business.

4. Why Engage in Corporate Restructuring?
• Growth
• Diversification
• Optimum utilization of capacities
• Improved competencies

5. • Cost reduction
• Financial restructuring / support
• Revival of weak or sick company
• Widen market presence
• Advantages of brand equity /
goodwill / IP

6. Types Of Restructuring
 Expansion: Mergers, Acquisitions, Takeovers , Tender offer, Joint Venture
 Contraction: Sell offs, Spin offs, Split offs , Split ups, Divestitures, Equity Carve
outs
 Corporate Control : Takeover Defences, Share Repurchases, Exchange Offers,
Proxy Contests
 Changes in Ownership: Leveraged Buyout , Going Private

7. Needs of corporate restructuring
• To expand the business or praations of the company
• To carry on the business of the company more economically and efficiently
• To focus on core strength
• Cost reduction, by deriving the benefits of economies of scale
• To obtain tax advantage by merging a loss-making company with a profit
making company.

8. • To have access to better technology.
• To have better market share
• To overcome significant problems in a company.
• To become globally comitative.
• To eliminate competition between the companies