Corporate Restructuring


Corporate restructuring encompasses a broad range of activities and include acquisition and divestiture of lines of business and assets, acquiring controlling shares in other companies, alteration in capital structure through a variety of financial engineering initiatives, and also effecting internal streamlining and business process reengineering to improve efficiency and effectiveness of the firm. Corporate restructuring can thus lead to changes along one or more of the three directions, vis-à-vis, i) assets and portfolio, ii) capital structure, and iii) organization and management. Assets and portfolio structure can get significantly altered when a firm undertakes a series of acquisitions and divestitures to bring more focus to its lines of business or widen its activities to enter new fields. Capital structure can change due to corporate restructuring caused by infusion of large debt, change in equity due to either expansion of capital base or buyback of equity or composition of owners (e.g., participation of MNCs, and FIs in the equity of the firm). Organizational restructuring is also a part of the overall corporate restructuring and is designed to improve the overall efficiency and effectiveness of the organization through changes in structure, systems and processes, people and culture.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight

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The Driver for Speed


The time culture can impose unrealistic deadlines upon those who are charged with the responsibility for delivering improvements. When a supply chain is involved, the single company may be no more able to achieve a tangible impact upon the external environment that it can deliver all the value that is sought by a final customer. When others are involved, there is likely to be bargaining and negotiation.

Today’s craze can be tomorrow’s memory. Too many managers assume that trends will continue longer than subsequently turns out to be the case. With many environmental and social policies taking many years to have a significant impact, companies face a dilemma similar to that encountered by those seeking to change attitudes and behavior. By the time the outcomes initially sought have been achieved, the requirement may have changed. Will there be a backlash when people count the costs? Will they become bored? Will certain lobbies go the way of the skateboard as people become more aware of the lack of achievement in relation to fundamental problems?

Winners assemble a comprehensive, complementary and coordinated set of initiatives, embracing all the parties involved, that are likely to have a significant impact upon an environmental or social issue. They achieve a significant change of attitude, because all the varios change elements that are necessary have been put in place.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact Asif J. Mir.