“Enabling Growth Through Education”

IIMT Studies, Ahmedabad

Welcome All participants

4th Ranked e-Learning

Institute of India

E-Lecture Dt: 1.11.2018

Management

Faculty : Ms.Amrita Rawat

Topic :CORPORATE

RESTRUCTURES

Restructuring is widely used in both the developed and developing countries nowadays. Companies and economies are restructuring to achieve a higher level of performance or to survive when the given structure becomes functional.

A merger is a combination of two companies where one corporation is completely absorbed by another corporation.

The expression merger or amalgamation means “Combining of two commercial companies into one” and “Merging of two or more business concerns into one” respectively.

ACQUISITION:-

CONSOLIDATION:-

COMBINATION:-

TAKEOVER :-

1) Horizontal Mergers

2) Vertical Mergers

3) Conglomerate Mergers

(1)STRATEGIC BENEFIT:

(2)OPERATING ECONOMIES:-

(3) SYNERGY:-

(4) CROSS SELLING: -

(5) TAXES SAVINGS: -

(6) GREATER VALUE GENERATION:-

(7) GAIN IN MARKET SHARE:-

(8) RESOURCE TRANSFER:-

(9)DIVERSIFICATION:

1. Capitalized Earning:

2. Assets Approach:

3. Market Value Approach:

4. Earnings per Share:

Corporate governance is, “the framework of rules, relationships, systems and processes within and by which authority is exercised and controlled in corporations.” It encompasses the mechanisms by which companies, and those in control, are held to account.

The Cadbury Committee Report (1991) defines Corporate Governance as “a system by which corporate are directed and controlled”.

Principle 1,

Principle 2,

Principle3,

Principle 4,

Principle 5,

Principle 6,

Principle 7,

1) All Shareholders are Equal:

2) Claims of Other Stakeholders:

3) Duties of the Board:

4) Rules and Regulations of Behaviour:

5) Disclosure:

6) Environmental and Social Responsibilities:

7) Audit Committee:

Thanks