Acquisition Finance and Corporate Restructuring
To what extent does a mature and cyclical product market drive corporate restructuring?
Use an extended example to discuss whether restructuring transforms market and financial performance.
An organization which is operating in a mature market means that the product does not have the scope to grow anymore. The product has reached its peak, with no prospects to increase, as the product is has become most popular in the market and no one else will be willing to buy it.
A cyclical market is one which has demands changing due to external factors relating to the product. These factors could be the time of year, month or week or even the weather. With these products there are no prospects and when there is a low peak in the cyclical cycle the organization is not doing too well.
In order to increase the demand of both products in the mature and cyclical markets, organizations will drive into restructuring. By restructuring the organization will hope to improve performance of the products in the market.
This essay will look at restructuring in terms of the mature and cyclical markets. Firstly it would be looked at what restructuring is and why restructuring occurs in a mature and cyclical market.
This will be further backed with case studies. The essay will then focus on what have been the implications of restructuring and has it been successful in order to improve performance.
Sp we have established that an organization operating in a mature or cyclical market may want to restructure to result in better performance. Now the following part of the essay will firstly look at different ways in which organization can restructure.
The traditional forms of restructuring were through merger and acquisition by inter corporate sell-offs, spin-offs, Management buyouts or management buy-ins and leveraged buy-outs.
These traditional forms of restructuring were aimed to maximize shareholder wealth.
However other forms of restructuring exist in the form of rightsizing which includes
Use an extended example to discuss whether restructuring transforms market and financial performance.
An organization which is operating in a mature market means that the product does not have the scope to grow anymore. The product has reached its peak, with no prospects to increase, as the product is has become most popular in the market and no one else will be willing to buy it.
A cyclical market is one which has demands changing due to external factors relating to the product. These factors could be the time of year, month or week or even the weather. With these products there are no prospects and when there is a low peak in the cyclical cycle the organization is not doing too well.
In order to increase the demand of both products in the mature and cyclical markets, organizations will drive into restructuring. By restructuring the organization will hope to improve performance of the products in the market.
This essay will look at restructuring in terms of the mature and cyclical markets. Firstly it would be looked at what restructuring is and why restructuring occurs in a mature and cyclical market.
This will be further backed with case studies. The essay will then focus on what have been the implications of restructuring and has it been successful in order to improve performance.
Sp we have established that an organization operating in a mature or cyclical market may want to restructure to result in better performance. Now the following part of the essay will firstly look at different ways in which organization can restructure.
The traditional forms of restructuring were through merger and acquisition by inter corporate sell-offs, spin-offs, Management buyouts or management buy-ins and leveraged buy-outs.
These traditional forms of restructuring were aimed to maximize shareholder wealth.
However other forms of restructuring exist in the form of rightsizing which includes