REASONS FOR CORPORATE RESTRUCTURING

Become more competitive

Survive adverse economic climate

Move the company in a new direction

Enhance shareholder value

Focus on profitable investments

Reorganize or sell unprofitable divisions

Types of Corporate Restructuring

1. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

2. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

2. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

3. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

3. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

4. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

4. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

5. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

5. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

6. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

6. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

7. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

7. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

8. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

8. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

9. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

9. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

10. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

10. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

11. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

11. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

12. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

12. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

13. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

13. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

14. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

14. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

15. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

15. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

16. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

16. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

17. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

17. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

18. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

18. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

19. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

19. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

20. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

20. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

21. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

21. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

22. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

22. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

23. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

23. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

24. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

24. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

25. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

Types of Corporate Restructuring

25. Financial Restructuring

Reorganize financial assets and liabilities

Cut costs by combining departments

Reduce production of goods not selling well

Help company survive tough economic times

26. Organizational Restructuring

Change management structure and governance

Regroup business units

Downsize workforce

Decentralize decision making

Outsource functions

Improve technology and workflows

Address personnel issues

Improve productivity and morale

Strategies for Restructuring

Acquisitions, mergers, strategic alliances

Break up into smaller business units

Virtual corporation - flexible, adaptable

Verticalization - group by product lines

Delayering - flatten organizational structure

Methods of Corporate Restructuring

Joint ventures

Spin offs, split offs, split ups

Divestitures - sell assets or divisions

Equity carve outs - sell shares, keep control

Leveraged buyouts

Management buyouts

Why Restructure a Company?

Sometimes companies need a makeover to get back on track. Corporate

restructuring helps revive struggling businesses or take successful

companies to the next level.

Reasons companies might restructure:

The competitive landscape has changed and they're struggling to

keep up

They're in survival mode due to a recession or industry disruption

They want to shift gears and pursue new opportunities

Shareholders want better returns on their investment

Parts of the business are drowning while others are thriving

Management realizes things need to shake up or revenues will sink

Major Types of Restructuring:

Financial - Revamping finances to cut costs, improve cash flow, reduce

debt burden

Organizational - Redesigning operations, reporting structures, workflows

Common Strategies:

Merge with or acquire other companies to gain scale and synergies

Form strategic partnerships to share resources and capabilities

Break up conglomerates into more nimble focused businesses

Outsource stuff that other companies can do better/cheaper

Flatten hierarchies so decisions don't get bottlenecked

Empower frontline employees and make managers prove their worth

Ways to Reshape a Company:

Sell off lagging brands, business units that are past their prime

Joint ventures to pursue new opportunities with less risk

Issue an IPO for a hot subsidiary while retaining control

Leveraged buyout - load up on debt to take the company private

Spin off an innovative but struggling division so it can thrive

Managers buy the company if they think they can improve it

Hire consultants to "right-size" and find inefficiencies

The goal is to create a leaner, meaner version - ready to rebound!

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