Methods of Corporate Restructuring
The important methods of Corporate Restructuring are: Joint ventures Sell off and spin off Divestitures Equity carve out (ECO) Leveraged buy outs (LBO) Management buy outs Master limited partnerships Employee stock ownership plans (ESOP) 1. Joint Ventures Joint ventures are new enterprises owned by two or more participants. They are typically formed for special purposes for a limited duration. It is a combination of subsets of assets contributed by two (or more) business entities for a specific business purpose and a limited duration. Each of the venture partners continues to exist as a separate firm, and the joint venture represents a new business enterprise. It is a contract to work together for a period of time each participant expects to gain from the activity but also must make a contribution. For Example: GM-Toyota JV: GM hoped to gain new experience in the management techniques of the Japanese in building high-quality, Continue reading