"Smaller is manageable but Bigger is Beautiful" are not the only reasons for indulging Corporate Restructuring exercise by the Management in managing the establishments. Elucidate the statement indicating need, scope and

In every corporate restructuring exercise, the aim is to eliminate disadvantages and to combine advantages. The various needs for undertaking a Corporate Restructuring exercise are as follows: to focus on core strengths, operational synergy and efficient allocation of managerial capabilities and infrastructure. consolidation and economies of scale by expansion and diversion to exploit extended domestic and global markets. revival and rehabilitation of a sick unit by adjusting losses of the sick unit with profits of a healthy company. acquiring constant supply of raw materials and access to scientific research and technological developments. capital restructuring by appropriate mix of loan and equity funds to reduce the cost of servicing and improve return on capital employed. improve corporate performance to bring it at par with competitors by adopting the radical changes brought out by information technology. One of the modes is to amalgamate the units in order to get the advantage of a bigger and useful organization. On the other hand, to get rid of demerits of manageability, demerger is resorted to. Thus, mergers, demergers, reverse mergers, takeovers, joint ventures, strategic alliances, franchising, slump sale are the different strategies that forms part of corporate restructuring. Further, various aspects are to be examined such as valuation, funding, legal, procedural, taxation, stamp duty, accounting, competition as well as human and cultural synergies while under taking corporate restructuring.