"Corporate restructuring strategies depend on the nature of business, type of diversification required with the object of profit maximization through pooling of resources in effective manner, utilization of idle resource

The given statement is absolutely true. The restructuring process requires various aspects to be considered before, during and after the restructuring. Any or combination of one or more of the following strategies are adopted in an effective corporate restructuring. They are as under: Merger Merger is the combination of two or more companies which can be merged together either by way of amalgamation or absorption or by formation of a new company. Demerger It is a form in which the entity's business operations are segregated into one or more components. Reverse Merger Reverse merger is the opportunity for the unlisted companies to become public listed company, without opting for Initial Public offer (IPO) or a sick company acquires a profitable company to avail tax benefits. Disinvestment Disinvestment means the action of an organization or government selling or liquidating an asset or subsidiary. It is also known as "divestiture". Takeover/Acquisition Takeover occurs when an acquirer takes over the control of the target company. It is also known as acquisition. Normally this type of acquisition is undertaken to achieve market supremacy. Joint venture (JV) The parties agree to contribute equity to form a new entity and share the revenues, expenses, and control of the company. It may be Project based joint venture or Functional based joint venture. Strategic Alliance Any agreement between two or more parties to collaborate with each other, in order to achieve certain objectives while continuing to remain independent organizations is called strategic alliance. Franchising Franchising may be defined as an arrangement where one party (franchiser) grants another party (franchisee) the right to use trade name as well as certain business systems and process, to produce and market goods or services according to certain specifications. Slump Sale Slump sale means the transfer of one or more undertaking as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities in such sales.