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corporate restructuring is a process by which
a company can consolidate its business
operations and strengthen its position for
achieving the desired objectives of staying
synergetic, competitive and successful.
coocept of cotpotote testtoctotloq
Corporate restructuring is generally
understood as a technique to restructure the
assets and liabilities of a corporate entity
including its debt-equity structure to promote its
overall efficiency and growth.
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8eoeflts of cotpotote testtoctotloq
MERGER AND
ACQUISITION
Metqet
merger is a combination of
two or more companies into one
company. t may be in the form of one
or more companies being merged into
an existing company or a new
company may be formed to merge two
or more existing companies.
Merger through absorption:
combination of two or more companies
into an existing company is known as
absorption. n a merger through absorption all
companies except one go into liquidation and lose
their separate identities.
Merger through consolidation:
consolidation is a combination of two
or more companies into a new company. n the
form of merger, all the existing companies,
which combine, go into liquidation and form a
new company with a different entity.
MERGER MAY TAKES ANY OF TWO
FORMS:
Absorption:
Consolidatio
n:
A
8

A 8 8
orizontal merger:
when two or more concern dealing in a same
product or services join together, it is known as a
horizontal merger.
'ertical merger:
n this case two or more companies dealing
in the same product but at different stage may
join to carry out the whole process itself.
Conglomerate merger:
when two concerns dealing in totally different
activities join hands it will be a case of
conglomerate merger.
TYPES OF MERGER:
TRANS
PORT
COMPA
NY 2
TRANSP
ORT
COMPA
NY
TAXTIL
E
COMPA
NY
INSURA
NCE
COMPA
NY
orizonta
l
merger
Vertical merger
Conglomerat
e
merger
t is simply an act of acquiring control over management
of other companies. The control over management of other
company can be acquired through-
orced or unwilling acquisition:
if the control acquired through unwilling acquisition &
forcefully .
riendly acquisition:
hen a company take-over the control of another
company through mutual agreement, it is called friendly
acquisition.
ACQUISITION:
IFFERENCE BETWEEN MERGER AN
ACQUISITION:
MERGER : ACQUISITION:
A
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OR
peraLlng economles
Lconomles of scale
1ax lmpllcaLlon
LllmlnaLlon of compeLlLlon
8eLLer flnanclal plannlng
CrowLh
Lconomlc necesslLy
8eoeflts Of Metqets AoJ Acpolsltloos
LllmlnaLlon of healLhy
compeLlLlon
oncenLraLlon of economlc
power
Adverse effecLs on naLlonal
economy
ulsadvanLage f Merger And AcqulslLlon
Analysls of Lhe proposal
ueLermlnaLlon of exchange raLlo
Approval by Lhe board of dlrecLor
Approval by shareholders
onslderaLlon of Lhe credlLors
Approval of Lhe courL
1ransfer of asseLs and llablllLles
aymenL ln cash or securlLles
rocedure lor Merger And AcqulslLlon
Jitendra
Virahyas
]v!RAHYAS@CNA!L.CON