MEANING OF CORPORATE RESTRUCTURING :

Restructuring as per Oxford dictionary means, “to give a new structure to, rebuild or rearrange”. Corporate Restructuring thus implies rearranging the business for increased efficiency and profitability.

The meaning of the term ‘Corporate Restructuring’ is quite wide and varied. Depending upon the requirements of a company, it is possible to restructure its business, financial and organizational transactions in different forms. Restructuring is a method of changing the organizational structure in order to achieve the strategic goals of the organization or to sharpen the focus on achieving them. The essentials of Corporate Restructuring are efficient and competitive business operations by increasing the market share, brand power and synergies.

Simply stated, Corporate Restructuring is a comprehensive process, by which a company can consolidate its business operations and strengthen its position for achieving its short-term and long-term corporate objectives – synergetic, dynamic and continuing as a competitive and successful entity.

The expression ‘Corporate Restructuring’ implies restructuring or reorganizing a company or its business (or one of its businesses) or its financial structure, in such a way as to make it operate more effectively. This is not a legal term and has no precise meaning nor can it be defined with precision.