Recommandé
Contenu connexe
Tendances
Tendances (20)
Similaire à Restructuring and types of restructuring
Similaire à Restructuring and types of restructuring (20)
Dernier
Dernier (20)
Restructuring and types of restructuring
- 2. Introduction ORGANIZE DIFFERENTLY TO GAIN EFFICIENCY AND COMPETITIVENESS.
- 4. Portfolio & Asset Restructuring Affect distinctly the asset base or the product / service portfolios of the organizations in consideration, as also the power and control related issues. These types of restructuring initiatives are usually undertaken to enhance the profitability of the both companies in a mutually rewarding situation.
- 5. Capital Restructuring Capital is generally the assets, often monetary, that are available to generate more assets. Thus the liquidity of capital should be high. Restructuring them means reallocating them to improve their availability (liquidity).
- 6. Organisation and Management Organizational Restructuring hovers around the changes in organizational design. It brings about changes in decision making, information flow and management style.
- 7. Types of Portfolio Asset Restructring
- 8. Mergers & amalgamation CONSOLIDATION OF COMPANIES
- 9. Types of Merger and Amalgamations Horizontal Merger Vertical Merger Conglomerate
- 10. Horizontal Merger WHEN TWO COMPANIES COMPETING IN THE SAME MARKET MERGE OR JOIN TO GETHER
- 11. Vertical Merger A merger between two companies producing different goods or services for one specific finished product.
- 12. Conglomerate Merger A merger involves mergers of corporates in related as well as unrelated businesses to achieve three objectives; a. Product Extension b. Entry into new Geographic Markets c. Entry into unrelated yet profitable businesses.
- 13. Joint Venture ENTITY FORMED BETWEEN TWO OR MORE PARTIES TO UNDERTAKE ECONOMIC ACTIVITY TOGETHER.
- 14. Acquisitions BUYING OF ONE COMPANY (THE ‘TARGET’) BY ANOTHER.
- 16. Management Buyouts The management of a company decides to take their company private because it feels it has the expertise to grow the business better if it controls the ownership.
- 17. Takeovers Takeovers are normally viewed as unfriendly acquisitions as in this case, one company purchases a majority interest in the target company resulting in loss of management control for the target company.
- 18. Hostile Takeover It is a takeover attempt that is strongly resisted by the target firm and is undertaken by purchasing the majority of outstanding shares of the target company in the open stock market.
- 19. Leveraged Buyout IT IS A TYPE OF ACQUISITION WHEREIN THE ACQUIRING COMPANY USES A LARGE AMOUNT OF DEBT .
- 20. Asset Buyout A buyout strategy in which key assets of the target company are purchased, rather than its shares.
- 21. Divestitures The partial or full disposal of an investment or asset through sale, exchange, closure or bankruptcy.
- 22. Types of Divestitures Spin offs Splits Equity carve outs Disinvestment Split-ups Split-offs
- 23. Spin Offs A company owns or creates a subsidiary whose shares are distributed on a pro rata basis to the shareholders of the parent company where the Parent usually retains some ownership of approximately 10 to 20%.
- 24. Splits Splits refer to splitting the corporate entity into two or more parts to achieve its strategic objectives.
- 25. Split-ups When a firm splits into 2 or more entities - usually accomplished with carve-outs and spin-offs of individual parts,
- 26. Split-offs Some of the shareholders of the parent company receive a subsidiary's shares on condition that they return the shares they hold of the parent company.
- 27. Equity Carve- outs It is the IPO of some portion / some percentage of the common stock of the wholly owned subsidiary of the Parent Company.
- 28. Disinvestment The use of a concerted economic boycott, with specific emphasis on liquidating stock, to pressure a government, industry, or company towards a change in policy, or in the case of governments, even regime change.