📝 One-liners · 64 cards

Mergers, Acquisitions and Restructuring - Part 1

Organisational (operational) restructuring — What It Changes / Typical Tools?
What It Changes: Business portfolio, divisions, processes, manpower; Typical Tools: Divestiture, spin-off, BPR, headcount rationalisation, plant closure
Financial restructuring — What It Changes / Typical Tools?
What It Changes: Capital structure, debt profile, equity ownership, cross-holdings; Typical Tools: Debt/equity swap, debt loading (LBO), rights issue, bond buy-back, CDR/IBC route
Amalgamation — Essence / Surviving Entity? / New Entity Created?
Essence: Two or more similar businesses go into liquidation and a NEW company is formed to take over; Surviving Entity?: None (both wound up); New Entity Created?: Yes
Absorption — Essence / Surviving Entity? / New Entity Created?
Essence: A combination of two or more companies into an EXISTING one; all except one lose their identity; Surviving Entity?: One (the absorber); New Entity Created?: No
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