Corporate restructuring includes capital restructuring, asset restructuring, and management restructuring.
What is Corporate restructuring?
Corporate restructuring refers to a strategy to alter the management, operations, or structure of a firm. There are two types of corporate restructuring: voluntary and involuntary. The corporation itself frequently initiates voluntary restructurings, which typically imply financial difficulties. Under bankruptcy statutes, courts may mandate involuntary restructurings.
Because there is no transfer of ownership from one company to another, corporate restructurings are different from mergers and acquisitions. Additionally, it is distinct from divestitures, which entail the sale of a portion of a corporation.
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