- Rapid Technological change
- Coming up of new markets with new class of consumers
- Increase in competition
- Globalization etc.
There can be many types/forms of the Corporate restructuring,like:-
- Merger and Acquisition
- Consolidation
- Divestiture
- Joint venture
- Carve out
- Buy back of securities
- De-merger
- De-listing the company from the stock exchanges etc.
Companies resort to Restructuring so as to increase the shareholders wealth,value and growth of the company plus the need of an hour too demands the same as it gives room to the Companies to have an edge over there competitors. And at present business scenario, it has become Necessary for a company to restructure itself from time to time as due to cut throat competition in the market,Companies either resort to market development,market penetration ,integration's be it vertical-horizontal integration forward-backward integration etc. which eventually leads to corporate restructuring.
"Survival of the fittest"
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