Professional Documents
Culture Documents
De Leon, Alwin
Doronio, Christian Mark
Estavillo, Lerma
Business Restructuring
Involves radically changing a
company's organizational, financial
and operating structure
Addresses serious financial and
operational issues that could lead to
a corporation's shutdown or
liquidation.
Business Restructuring
conducted for the primary purpose of
returning a corporation to
profitability and productivity.
Or, the restructure is often viewed as
a sign that the company is financially
stable and has set goals for future
growth and expansion.
Reasons for Organizational
Restructuring:
Changing nature of business
New methods of working
Proper technology
Buy outs
Basic principles of Business
Restructuring:
Align the organizational structure
Cut down on the complexity
Focus on having better activity
Creating roles that are feasible
Balance your work properly and load
of managers
Kinds of Business Restructuring Strategy
Financial Restructuring
Organizational Restructuring
Portfolio Restructuring
Financial Restructuring
is the reorganization of the financial
assets and liabilities of a corporation.
undertaken as a means of
eliminating waste from the costs of
operations of the company.
Types of Financial Restructuring
1. Debt Swap
-Change in the company's capital
structure
-Replacing debt with equity
2. Debt Loading
-loads the balance sheet with debt
to finance the buyout of existing
shareholders.
Organizational Restructuring
Divestitures
which a firm sells a portion of its
assets or a division to another
company.
Leveraged Buyout
- transaction in which a person, group
of people, or organization buys a
company or a controlling share in the
stock of a company.
Management buyout
- management of the company buys
the company