CORPORATE RESTRUCTURING PPT FOR MANAGEMENT.pptx

CORPORATE RESTRUCTURING

1. Corporate Restructuring CS Ankit Shah

2. Corporate restructuring refers to the changes in ownership, business mix, asset mix & alliance with a view to enhance the shareholders value. Corporate Restructuring may involve ownership restructuring, business restructuring, asset restructuring for the purpose of making it more efficient and more profitable. Corporate Restructuring: CS Ankit Shah

3. Business Restructuring - Reorganization of Business Units or Divisions. E.g. Diversification into new businesses, out sourcing, divestment, brand acquisitions etc. Asset Restructuring - Acquisition or sale of asset & their ownership structure. E.g. Sale & lease back of assets, securitization of debts, receivable factoring etc. Continue… CS Ankit Shah

4. To enhance the shareholder value. Continuously evaluate its portfolio of businesses, capital mix, ownership & assets arrangements. Focus on asset utilization & profitable investment opportunities & reorganize or divest less profitable or loss making businesses/products. To enhance value through capital restructuring. Reasons of Corporate Restructuring: CS Ankit Shah

5. Types of Corporate Restructuring CS Ankit Shah

6. A merger refers to the process whereby at least two companies combine to form one single company. A merger happens when two firms agree to go forward as a single new company rather than remain separately owned and operated. Business firms make use of mergers and acquisitions for consolidation of markets as well as for gaining a competitive edge in the industry. Merger: CS Ankit Shah

7. Ex: the merger of Brooke Bond India Ltd., with Lipton India Ltd., resulted in the formation of a new company Brooke Bond Lipton India Ltd. CS Ankit Shah

8. Thank You CS Ankit Shah