03/04/2016

MeaningandvariousformsofCorporateRestructuring

NOW TRENDING:
INTERNATIONAL MARKET INT... (HTTP://WWW.BBAMANTRA.COM/INTERNATIONAL-MARKET-INTERMEDIARIES/)
REGIONAL ECONOMIC INTEGR... (HTTP://WWW.BBAMANTRA.COM/REGIONAL-ECONOMIC-INTEGRATION/)
TARIFF AND NON TARIFF BA... (HTTP://WWW.BBAMANTRA.COM/TARIFF-AND-NON-TARIFF-BARRIERS/)
BUSINESS PLAN & PRE... (HTTP://WWW.BBAMANTRA.COM/PREPARATION-OF-A-BUSINESS-PLAN/)

BBA|MANTRA
(HTTP://WWW.BBAMANTRA.COM)
ARTICLES
(HTTP://WWW.BBAMANTRA.COM/ARTICLES/)
PROJECTS
(HTTP://WWW.BBAMANTRA.COM/PROJECTS-AND-PRESENTATIONS/)
ENOTES

ABOUT
(HTTP://WWW.BBAMANTRA.COM/ABOUT/)

HOME
(HTTP://WWW.BBAMANTRA.COM/)

(http://tracking.vcommission.com/aff_c?

(http://tracking.vcommission.co

offer_id=2541&aff_id=47433&file_id=88658)

offer_id=2513&aff_id=47433&fi

(http://tracking.vcommission.com/aff_c?
offer_id=1622&aff_id=47433&file_id=57212)

CORPORATE
RESTRUCTURING AND
VARIOUS FORMS OF
CORPORATE

http://www.bbamantra.com/corporaterestructuring/

1/10

03/04/2016

MeaningandvariousformsofCorporateRestructuring

CORPORATE
RESTRUCTURING IN INDIA
bbamantra (http://www.bbamantra.com/author/vikas-

Get All Notes in

Your Inbox

choudhary1991gmail-com/) | September 2, 2015 | Articles

(http://www.bbamantra.com/category/articles/) | No Comments
(http://www.bbamantra.com/corporate-restructuring/#respond)

(http://tracking.vcommission.com/aff_c?

Subscribe now and

be the rst to receive
all the latest updates!

offer_id=689&aff_id=47433&file_id=87841)

CORPORATE RESTRUCTURING

Name
Email

Subscribe now
We don't spam. We
Educate.

(http://www.bbamantra.com/wpRECOMMENDED
content/uploads/2015/09/Secretary_of_Defense_Chuck_Hagel_second_from_left_mee
COURSES
profit_veterans_organizations_leadership_at_a_round_table_hosted_by_JWorkshop in Probability and
compressed.jpg)Corporate Restructuring implies
Statistics from Snapdeal
(http://www.snapdeal.com/product/wor
activities related to
Expansion/contraction of a firms operations or
Changes in its Assets orFinancial orOwnership
structure
Changes in Corporate control

FORMS OF CORPORATE
RESTRUCTURING
http://www.bbamantra.com/corporaterestructuring/

in-probability-andstatistics/625750891042?
utm_source=aff_prog&utm_campaign=a

Introduction to Microsoft
PowerPoint 2013 from
Snapdeal
(http://www.snapdeal.com/product/intr
to-microsoft-powerpoint2013/626276284929?
utm_source=aff_prog&utm_campaign=a

Microsoft Excel 2010:

Advanced Training from
Snapdeal
(http://www.snapdeal.com/product/mic
excel-2010-advancedtraining/634007361170?
utm_source=aff_prog&utm_campaign=a
2/10

03/04/2016

MeaningandvariousformsofCorporateRestructuring

The most common forms of corporate

restructuring are mergers/amalgamations,
acquisitions/take overs, financial restructuring,
divestitures/demergers and buy-outs. It is
essentially the process of re-designing one or
more aspects of the company.

Writing With Flair: How To

Become An Exceptional
Writer from Snapdeal
(http://www.snapdeal.com/product/writ
with-flair-howto/659185870685?
utm_source=aff_prog&utm_campaign=a

(http://tracking.vcommission.com/aff_c?
offer_id=2513&aff_id=47433&file_id=84821

(A) Mergers and Amalgamation A merger is a

combination of two or more distinct entities into (http://tracking.vcommission.com/aff_c?
offer_id=180&aff_id=47433&file_id=81591)
one, the desired effect being accumulation of
assets and liabilities of district entitiesandseveral
EARN MONEY BY
other benefits such as, economies of scale, tax
LEARNING THE MOST
benefits, fast growth, synergy and diversification
DESIRED SKILLS
etc. The merging entities cease to be in existence
Learn Photoshop, Web
and merge into a single servicing entity.
Design & Profitable

Amalgamation is an arrangement, whereby the

assets and liabilities of two or more companies
become vested in another company
(amalgamated company) without giving
proportional ownership to the shareholders of the
acquired company. The amalgamating companies
all lose their identity and emerge as an
amalgamated company, though in certain
transaction structures the amalgamated company
may or may not be the original companies.

TYPES OF MERGERS

http://www.bbamantra.com/corporaterestructuring/

Freelancing from Snapdeal

(http://www.snapdeal.com/product/lear
photoshop-web-designprofitable/619057601613?
utm_source=aff_prog&utm_campaign=a

The Complete Hacking

Course: Go from Beginner to
Advanced! from Snapdeal
(http://www.snapdeal.com/product/thecomplete-hacking-coursego/674201580023?
utm_source=aff_prog&utm_campaign=a

The Complete Facebook Ads

and Facebook Marketing
Course 2015 from Snapdeal
(http://www.snapdeal.com/product/thecomplete-facebook-adsand/624654499830?
utm_source=aff_prog&utm_campaign=a

Wordpress for Beginners Master Wordpress Quickly

from Snapdeal
(http://www.snapdeal.com/product/wor
3/10

03/04/2016

MeaningandvariousformsofCorporateRestructuring

Horizontal Merger It takes place when two or

more corporates firms dealing in similar lines of
activity combine together.

Vertical Merger It occurs when a firm acquires

firms `upstream from it and/or downstream
from it. It involves combination of two or more
stages of Production/distribution that are usually
separate. Usually, it occurs between companies
producing different products for one specific
finished product.

Conglomerate Merger It takes place between

firms which have unrelated business activities. It
is a combination in which a firm established in
one industry combines with a firm from an
unrelated industry (firms engaged in different
unrelated activities combine together)

for-beginners-masterwordpress/630133483509?
utm_source=aff_prog&utm_campaign=a

Digital Marketing Step By

Step + 60 Page Workbook
Plan from Snapdeal
(http://www.snapdeal.com/product/digi
marketing-step-bystep/632820924438?
utm_source=aff_prog&utm_campaign=a

Become a Web Developer

from Scratch from Snapdeal
(http://www.snapdeal.com/product/bec
a-web-developerfrom/653497207696?
utm_source=aff_prog&utm_campaign=a

Build Websites from Scratch

with HTML & CSS from
Snapdeal
(http://www.snapdeal.com/product/buil
websites-from-scratchwith/674448088470?
utm_source=aff_prog&utm_campaign=a

Popular

Recent

Concentric Merger It takes place between two

companies which share some common expertise
that may be mutually advantageous.

(B) Acquisition/Takeovers It implies acquisition

of controlling interest in a company by another
company. It does not lead to dissolution of
company whose shares are acquired. It can
assume three forms

http://www.bbamantra.com/corporaterestructuring/

Strategic
evaluation
and control(http://www.bbamantra.com/strategicTypes of
Control,Strategic
Evaluation
Process,Importance
(http://www.bbamantra.com/strategi
evaluation-and-control/)
September 19, 2015

ETOP(http://www.bbamantra.com/etopEnvironmental Threat
and Opportunity Profile
4/10

03/04/2016

MeaningandvariousformsofCorporateRestructuring

Negotiated friendly It is organized by the

incumbent management with a view to parting
with the control of management to another group
through negotiation.
Open market/hostile The taking over
company acquire shares from the open
market/financial institutions/mutual funds and
willing shareholders at a price higher than
prevailing market price.
Bail out takeover It is a takeover of a
financially weak company by a profitable
company. Both the holding company and
subsidiary retain separate legal entities and
maintain their separate book of accounts.

(C ) Demerger It is a form of corporate

restructuringin which a company transfers one or
more of its undertakings to another company in
such a manner that

All the property/liabilities of the undertaking

being transferred, becomes the part of the
resulting company
All property/liabilities of the undertakings are
transferred at values appearing in the books of
account
The resulting company issues, its shares on a
proportionate basis to the share holders of the
demerged company
Shareholders holding not less than 3/4thin the
http://www.bbamantra.com/corporaterestructuring/

(http://www.bbamantra.com/etopenvironmental-threatand-opportunity-profile/)
August 2, 2015

Non Banking
Financial
Company
(http://www.bbamantra.com/non(NBFC) in
India Role and
Importance
(http://www.bbamantra.com/nonbanking-financialcompany/)
September 1, 2015

Corporate
Restructuring
and various
(http://www.bbamantra.com/corporateforms of
Corporate Restructuring
in India
(http://www.bbamantra.com/corpora
restructuring/)
September 2, 2015

Market and
(http://www.bbamantra.com/marketdemand
Analysis
Project
Management
(http://www.bbamantra.com/marketand-demand-analysis/)
September 20, 2015

Next

5/10

03/04/2016

MeaningandvariousformsofCorporateRestructuring

value of shares in the demerged company

become shareholders of the resulting company
The transfer of undertaking is on a going
concern basis
The demerger is in accordance with the
conditions, under Sec 27 A by the Central
Government

Divestitures It is a form of corporate

restructuring which involves sale of segment of a
company for cash or securities. It involves sale of
only some assets of the firm. These assets may
be a plant, division, product line, subsidiary and
so on.
Split up Split or division of a company
Sell off Selling off assets of a company in a
declining market
Spin Off It is the division of company into
wholly owned subsidiary of parent company by
distribution of all its shares of the subsidiary
company on a pro-rata basis. (New company
from existing company)

(D) Financial Restructuring It is carried out

internally with the consent of the various
stakeholders by corporates which have
accumulated substantial losses. It is a suitable
model for corporate firms accumulating losses
over a number of years. It is achieved by
formulating appropriate restructuring scheme
http://www.bbamantra.com/corporaterestructuring/

6/10

03/04/2016

MeaningandvariousformsofCorporateRestructuring

involving a number of legal formalities. It implies

significant change in the financial/capital
structure of a firm, leading to the change in the
payment of fixed financial charges and change in
the pattern of ownership and control.

(E) Buy outs The Management Buy outs (MBO)

involves the sale of the existing firm to the
management. The management may be from the
same firm, from outside or may assure a hybrid
form. When debt forms a substantial part of the
total financing form outsiders the buy out
transaction is called Leveraged buy out.
Leveraged buy out implies acquisition of a firm
that is financed principally by borrowing on a
secured basis.

(F) Strategic Alliance It is a voluntary formal

agreement between two companies to pool their
resources to achieve a common set of objectives
while remaining independent entities.

You may also like:

http://www.bbamantra.com/corporaterestructuring/

7/10

03/04/2016

MeaningandvariousformsofCorporateRestructuring

Projects and
Lucknow
BBA|mantra - Articles for
Presentations Metro Rail
Enotes,
Management
for BBA
Corporation
Articles,
Students
corporation/)
metro-rail(http://www.bbamantra.com/project/lucknow(http://www.bbamantra.com/articles/)
Students
Projects &
presentations/)
and(http://www.bbamantra.com/projectsPresentations
(http://www.bbamantra.com/cycloneslider/1050/)

WANNA
KNOW
HOW TO
MAKE RS.
6,302/DAY?
Wanna Know

BBA|mantra - BBA|mantra - BBA|mantra Enotes,

Enotes,
Enotes,
How to Make
Articles,
Articles,
Articles,
Rs. 6,302/Day?
Projects &
Projects &
Projects &
Career Times
e=eyJhdiI6ODUxOTYsImF0IjoxNjIsImJ0IjowLCJjbSI6MjU5MTQ3
Presentations Presentations Presentations (http://engine.adzerk.net/r?
(http://www.bbamantra.com/cycloneslider/1053/)
safecss=safecss) (http://www.bbamantra.com/cycloneslider/1051/)
(http://www.bbamantra.com/?

ADD A COMMENT

Your email address will not be published. Required

fields are marked *
Comment:*

Name:*
http://www.bbamantra.com/corporaterestructuring/

8/10

03/04/2016

MeaningandvariousformsofCorporateRestructuring

Email Address:*

Website:

ADD COMMENT
Notify me of follow-up comments by email.
Notify me of new posts by email.

ARTICLES

REGIONAL

INTERNATIONAL
TARIFF AND

MODES OF

INTERNATIONAL ECONOMIC
INTEGRATION /
MARKET

NON TARIFF

INTERMEDIARIES REGIONAL
TRADE BLOCKS

INTERNATIONAL BUSINESS PLAN MODES OF

BUSINESS
ENTRY IN
ENTREPRENEURSHIP

BARRIERS IN

BUSINESS

BUSINESS PLAN & INTERNATIONAL INTRODUCTION

BUSINESSTO
PREPARATION OF A
INTERNATIONAL
BUSINESS

INTERNATIONAL (http://www.bbamantra.com/regional(http://www.bbamantra.com/tariff-FOREIGN
BUSINESS

economicand-non-tariffintegration/)
(http://www.bbamantra.com/internationalbarriers/)
marketintermediaries/)

(http://www.bbamantra.c
(http://www.bbamantra.com/preparationMARKET
toof-a-business(http://www.bbamantra.com/modesinternationalplan/)
of-entry-inbusiness/)
foreignmarket/)

COPYRIGHT 2016 BBA|MANTRA (HTTP://WWW.BBAMANTRA.COM).

DESIGNED BY VMARKET (HTTPS://WWW.FACEBOOK.COM/VIKAS.CHOUDHARY1991).
http://www.bbamantra.com/corporaterestructuring/

9/10

03/04/2016

MeaningandvariousformsofCorporateRestructuring

CONTACT US (HTTP://WWW.BBAMANTRA.COM/CONTACT-US/)
DISCLAIMER (HTTP://WWW.BBAMANTRA.COM/DISCLAIMER/)
PRIVACY POLICY (HTTP://WWW.BBAMANTRA.COM/PRIVACY-POLICY/)
TERMS & CONDITIONS (HTTP://WWW.BBAMANTRA.COM/TERMS-CONDITIONS/)

http://www.bbamantra.com/corporaterestructuring/

10/10