|
| |
John Spacey, December 13, 2015 updated on February 25, 2017
Restructuring is the process of reorganizing a business. The term implies a major change as opposed to a subtle improvement. The following are common types of restructuring.Mergers & AcquisitionsIntegrating the administration, operations, technology and/or products of two firms.
LegalChanging the legal structure of a firm such as ownership structure. For example, a business unit may become its own legal entity.FinancialA change to a firm's capital structure such as a debt restructuring designed to allow a firm in financial distress to continue to operate.Turnaround Restructuring the administration, operations and products of an organization that is performing poorly. Often requires new leadership and a change to strategy and culture.
Repositioning A strategy designed to move a firm or business unit to a new business or operational model. For example, a firm that sells software products that moves to a software services model.Cost RestructuringCutting administrative and operational costs in response to a downturn or anticipated downturn in revenue or margins.
DivestmentSelling or closing a business unit that is unprofitable, nonstrategic or problematic in some way.Spin-offRestructuring a business unit to be its own company while retaining some ownership. A spin-off is often done to seek a high valuation for an attractive part of a business.
Organizational Structure
This is the complete list of articles we have written about organizational structure.
If you enjoyed this page, please consider bookmarking Simplicable.
© 2010-2023 Simplicable. All Rights Reserved. Reproduction of materials found on this site, in any form, without explicit permission is prohibited.
View credits & copyrights or citation information for this page.
|
