INTRODUCTION
Restructuring refers to the process of reorganizing the legal, ownership, operational, or other structures of an organization with the goal of improving its efficiency and adaptability to its current requirements.[1] Additional factors that may lead to restructuring include a shift in ownership or ownership structure, a demerger, or a response to a crisis or significant change in the firm, such as insolvency, repositioning, or a buyout. Restructuring can also be referred to as business restructuring, debt restructuring, and financial restructuring. Managers are facing more responsibilities due to expanding rivalry, breakthrough technological advancements, changes in the industry, and increased stock market volatility. These factors need managers to offer superior performance and generate market value for shareholders.[2] Organizations that fail to successfully address the aforementioned issues may risk losing their autonomy or perhaps face complete destruction. The intensifying rivalry, rapid technological advancements, heightened shareholder expectations, and increasingly challenging business environment have placed a greater responsibility on managers to achieve exceptional performance and create value for their shareholders.[3] A larger company formed through the merger of smaller ones can benefit from economies of scale. A larger size results in a greater corporate standing. The status enables it to exploit this advantage by raising more cash at reduced prices. Lowering the expense of obtaining funds leads to increased financial gains.[4] The availability of capital enables the firm to expand at all levels, therefore increasing its competitiveness.
[1]“Ashish Makhija, Insolvency and Bankruptcy Code Of India (1st edn, Lexis Nexis 2018)
[2] Savitha, C &Ganesamurthy, K. (2021). CORPORATE RESTRUCTURING STRATEGIES IN INDIA -AN OVERVIEW. IX. 333-341, https://www.researchgate.net/publication/349278720_CORPORATE_RESTRUCTURING_STRATEGIES_IN_INDIA_-AN_OVERVIEW.
[3] “Danish Khan, “American Tower Corporation looks at mergers and acquisitions to boost presence in India”, ET Bureau Oct 2, 2014, 05.49AM IST; NEW DELHI”.
[4] Debdas Rakshit and Chanchal Chatterjee- CORPORATE RESTRUCTURING THROUGH MERGERS AND ACQUISITIONS: A CASE STUDY, Vidyasagar University Journal of Commerce, Vol. 13, March 2008, http://inet.vidyasagar.ac.in:8080/jspui/bitstream/123456789/975/2/p5.pdf, Last visited 15th Aug 2024”
