Growth in a business organization is primarily either organic or inorganic. Organic growth results through the organization’s own internal strategies such as capital restructuring or business restructuring. Such internal strategies result in increased customer base, higher sales, and revenue. This, however, does not result in a change in the corporate entity. Inorganic growth, on the other hand, is often attained by enhancing output and business reach through mergers, acquisitions, amalgamations, takeover and other corporate restructuring which result in a change in the corporate entity. Corporate restructuring, thus, is a means to attain inorganic growth in an organization.
In times of economic slump ‘corporate restructuring’ becomes the most talked of term in any business organization. While ‘restructuring’ refers to any changes brought about in the organization but the term ‘corporate restructuring’ is often done when the business is in a financial jeopardy.
Posted on Jan. 4, 2021, 2:02 p.m.Read More →