What is the difference between reorganization and restructuring?

Nagasravan Tamma
Published on 17-May-2022 13:30:31
In simple words, the word restructuring means any changes in a company. Generally the word restructuring in the corporate world is used in economic downturns. One should have a good understanding about the restructuring process before going for it.ReorganizationIt is a clause in company charter which provides guides to merger ... Read More

What is organizational restructuring?

Nagasravan Tamma
Published on 17-May-2022 13:27:17
Organizational restructuring is a process of reorganizing ownership, operational and other structures of an organization to make an organization profitable. Internal factors or external factors or combination of both are responsible for organization restructuring.If the restructuring helps an organization to develop and grow, then it is called positive restructuring. If ... Read More

What is equity restructuring in financial restructuring?

Nagasravan Tamma
Published on 17-May-2022 13:24:40
Financial restructuring is a process of reorganizing companies’ financial structure. Companies’ financial structure consists of both debt and equity capitals. Reorganizing financial structure can be from the asset side or liability side of the balance sheet.Equity restructuringIn this restructuring, equity capital is reorganized by reshuffling shareholders’ capitals and reserves in ... Read More

What is debt restructuring in financial restructuring?

Nagasravan Tamma
Published on 17-May-2022 13:21:28
Financial restructuring is a process of reorganizing companies’ financial structure. Companies’ financial structure consists of both debt and equity capitals. Reorganizing financial structure can be from the asset side or liability side of the balance sheet.Debt restructuringIn this process, the debt capital of the company is reorganized by reorganising the ... Read More

What is corporate restructuring?

Nagasravan Tamma
Published on 17-May-2022 13:18:39
Corporate restructuring is a process, where the entity modifies its capital structure or operations. Corporate restructuring is preferred, if there are significant problems in the financials of the corporation and to enhance their performances. Change in ownership is also one of the causes for corporate restructuring. Financial and legal experts ... Read More

What is acquisition financing?

Nagasravan Tamma
Published on 17-May-2022 13:15:59
To fund a merger and acquisition, the source of capital is required. To attain those funds is a complex thing because; it requires a lot of variations and combinations. Proper planning is required to get the capital for merger and acquisition. With various alternatives available, a proper mix is selected ... Read More

What are the differences between liquidation and bankruptcy?

Nagasravan Tamma
Published on 17-May-2022 13:11:14
Let us learn the concepts of liquidation and bankruptcy before understanding their differences.LiquidationLiquidation is the process of winding up a company by selling their assets and distributing them based on solvent or insolvent business. Liquidation occurs when a company decides or reaches a point when it decides not to continue ... Read More

What is the merger and acquisition deal structure?

Nagasravan Tamma
Published on 17-May-2022 13:08:46
Deal structure is the binding agreement between companies, which outlines rights and obligations for both the companies. This agreement states about the entitlements and constraints of companies.In other words, deal structure is nothing but terms and conditions of a merger and acquisition. It prioritizes the objectives and the major priorities ... Read More

How to Analyze Comparative Financial Statement?

Probir Banerjee
Published on 17-May-2022 09:09:35
What is Comparative Financial Statements?Comparative financial statements provide a comparison between key financial metrics for two consecutive years. It is a very useful tool to check whether the company’s financials are moving in the right direction. It is a document that lists two or more years of financial performance of ... Read More

Comparative Financial Statement: Definition and Purpose

Probir Banerjee
Published on 17-May-2022 09:06:04
What are Comparative Financial Statements?Comparative financial statements are statements which show a company’s statement in two or more consecutive periods in a single statement. Usually, the entities included in the comparative financial statements include balance sheets, profit and loss accounts, and cash flow statements for two consecutive years.The idea behind ... Read More
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