strategies

1. CORPORATE RESTRUCTURING
STRATEGIES
Presented by
MUNESH.PALURU

2. meaning
Corporate restructuring is all about creating
value. Of course , most of the daily decisions
that you will make as professional managers or
investors will have an impact on value.
sometimes, however, the value of an enterprise
falls significantly short of where it could be. In
other words, a company can find itself facing a
large ‘value gap’. the size of a value gap can be
huge for large companies it can be billions of
dollars.

3. Value gap can arises for variety of reasons
• Poor management
• Emergence of new strategic opportunities
• Failure of the capital markets to recognize(
i.e., market inefficiency)
• Increased competition
• Macro-economic shocks
• changes in technology, taxes or regulation.

4. Objectives of corporate restructuring
• Evaluation of current endowments and
performance
• Fine tuning of available skills, technology and
plant
• Assessment of changes in business
environment
• Identification of new business opportunities
• Securing of a competitive edge for the
corporation

5. Strategies of corporate restructuring
Expansion
strategies
Re organisiation
strategies/sell-offs
Financial
engineering
strategies
Governance and
control strategies
alliances divestitures esop compensation
arrangements
franchising Equity carve-outs exchange Premium buy back
Green mail
investment Going public lbo Proxy contest
Joint ventures privatization Leveraged
recapitalization
Take over defences
mergers Spin-offs and split-
ups
Share repurchase
Purchase of
divisions of
business unit
Tracking stock
Supplier network
Tender offer

6. Thank you