Page 8 - FINANCE PART 2 - 10. Mergers & Acquisitions
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MERGERS & ACQUISITIONS
Corporate restructuring background
• Business entities often restructure their operations,
assets, financial or legal structure – in a process
called corporate restructuring (see diagram) – with
the aim of becoming more successful or to better
serve their corporate strategy.
• Instead of growing organically, a firm can
sometimes achieve faster growth, especially in a
new market, by expanding through a merger with
or acquisition of another firm.
• Sometimes, changing circumstances, including
changing economies and strategies, dictate that a
firm divest itself of certain subsidiaries or interests.
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