Corporate Restructuring:
Corporate restructuring is a collective term for a variety of different business transactions.
Different forms of Corporate Restructuring:
Mergers, amalgamations, acquisitions, compromises, arrangement or reconstruction are all different forms of corporate restructuring exercises in the corporate world.
Results of Corporate Restructuring:
Corporate restructuring might result in changes like change in share capital or capital structure, change of shareholders, change of control, change of business, change of operating entities, etc.
Corporate restructuring serves different purposes for different companies at different points of time. It may take up various forms. The purpose of each of these restructuring activities is different but each one of them is targeted to rebuild or rearrange the corporate structure.
General Overview:
Corporate Restructuring is a non-recurring exercise for an organisation but it has a lasting impact on the business and other concerned agencies due to its numerous considerations and immense advantages viz., improved performance, better corporate governance etc. A company may grow his business either by internal expansion or by external expansion.
1.In the case of internal expansion, a company grows gradually overtime in the normal course of the business, through acquisition of new assets, replacement of the technologically obsolete equipments and the establishment of new lines of products.
2.In external expansion, a firm acquires a running business and grows overnight through corporate restructuring.