CORPORATE RESTRUCTURING: MERGERS AND ACQUISITIONS

AUTHOR – MANTHANI MEDHA REDDY, STUDENT AT BENNETT UNIVERSITY

BEST CITATION – MANTHANI MEDHA REDDY, CORPORATE RESTRUCTURING: MERGERS AND ACQUISITIONS, Indian Journal of Legal Review (IJLR), 3 (2) of 2023, Pg. 266-274, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract

The corporate world is evolving quickly in terms of science and technology, rivalry, goods, people, places, marketplaces, and clients. Keeping up with such enhancements is not enough; instead, firms must be creative and outperform their rivals so they can consistently maximize the value they offer shareholders. Inorganic development methods like mergers, acquisitions, reorganizations, and spin-offs are viewed as crucial tools that help businesses go into emerging markets, increase their client base, reduce opponents, strengthen, and expand rapidly, and use emerging technologies pertaining to their products, employees, and procedures. Corporate restructuring’s reach includes boosting economic growth (savings) and boosting effectiveness (profitability). A corporation must reorganize itself and put its focus on its edge in the market if it intends to expand or survive in a world of competition. The advantages that shareholders obtain from restructuring are less favorable than for corporations in their prior position. Despite the abundance of studies on corporate restructuring, research will either concentrate on the opinions of shareholders of corporate restructuring methods at organizations or the actual application of the approaches at those firms. By creating predictions of what to anticipate and ensuring the organization can get the financing necessary to execute those adjustments, the conclusions will also assist a company during the restructuring technique. In mergers and acquisitions (M&A), businesses combine their activities through an acquisition or transfer of ownership. M&A is a prevalent type of corporate restructuring. This paper will cover the advantages, difficulties, and strategies of corporate restructuring in mergers and acquisitions.