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Showing posts with the label Corporate Restructuring

What is Strategy?

The term strategy entered the business world from military services where it was originally used. The strategy works as a blueprint of an organisation that defines its vision, mission, and also helps in determining the future course of action. The strategy helps an organisation to minimise the strengths of competitors by maximising its own strengths. The strategy is formulated to achieve current goals of an enterprise by optimum allocation and utilisation of internal resources and by collaborating different organisational pursuits. Strategy tries to achieve synergy and balance between objectives, resources and concepts to maximise the possibility of success and fruitful results. In wider terms, strategy refers to determining the fundamental longterm organisational goals and at the same time developing plans, acquiring, allocating and deploying resources to achieve those goals. The purpose of formulating strategy is to bring consistency and alignment in the activities of an organi

What is Corporate Restructuring ?

The terms “corporate restructuring' refers to the complete process in which the company combines its business operations and increase its positions for attaining the predetermined goals, stay in the competition and earn more profits. The basic goal of corporate restructuring is to manage the business operations in an effective, efficient and competitive manner for increasing the market share, brand power and synergies of the organization. It consists of significant re-orientation, reorganization or realignment of assets and liabilities of the organization through conscious management actions with the objective of drastically altering the quality and quantity of the future cash flow streams. In the present situation, the joint ventures, alliances, mergers, amalgamations and takeover is the simple and fast way of increasing ability and obtaining a large number of market share. Reasons for Corporate Restructuring  The companies have to open new export houses in order to s

What is Mergers, Acquisitions and Corporate Restructuring ?

WHAT IS MERGERS ? Image By:- iPleaders Blog.com Introduction to Mergers The merger refers to combining two or more companies into one companioning   two or more companies into one company. It can either be done by merging of one or more companies into the existing company or framing a new to the existing company or framing a new company by merging two or more existing company. The word 'amalgamation is used for the merger by the Income Tax Act, The merger is done in the following two types: ·     Merger by absorption:- Combining two or more companies into the existing company are known as absorption. In this merger, one company loses its entity and goes into liquidation and all other companies remain the same. For example, there are two companies A Ltd. and B Ltd., company B Ltd. is merged in the assets and liabilities of company B Ltd will be acquired by company A Ltd. and company B Ltd. will be liquidated. For example, in India, there was a merger