• Corporate restructuring is a broad umbrella that covers many things. One of them is the merger or takeover. From the viewpoint of the buyer, M&A represent expansion and from the perspective of the seller it represents a change in ownership that may or may not be voluntary.
    • Corporate restructuring activities can be divided into broad categories such as: Expansion: Mergers and Acquisitions, Tender offer. Asset acquisition and Joint ventures Contraction: Spin offs, Split offs, Divestitures, Equity carve-outs and Assets sale Corporate Control: Takeover defenses, Share repurchases, Exchange offers and Proxy contests Changes in Ownership Structures: Leveraged buyout, Junk bonds, Going private ESOPs and MLPs.
    • Rationales for Mergers are growth prospective, adoption of technology, product advantages and government policies, regulations, tariffs and quotas also play a great role in the merger and acquisition activity in a country and more significantly in cross-border deals.
    • In this chapter, the topic "leveraged buyout" has also been discussed. Leveraged buyout is a financing technique where debt is used to purchase the stock of a corporation, and it frequently involves taking a public company into private. It means in leveraged buyouts transactions are only cash transactions in which the cash is borrowed by the acquiring firm.