Page 88 - Manac test 2 Cycle slides
P. 88
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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