“Corporate Restructuring is an inorganic growth strategy that significantly changes a company's business model, management team or financial structure to address challenges and increase shareholders' value”. Elucidate th

Organic growth strategy in corporate restructuring relates to business or financial restructuring within the organization that results in enhanced customer base, higher sales, increased revenue, without resulting in change of corporate entity. In contrast, if there is involvement of other entities in the form of mergers, takeovers, divestment, etc. it is referred to as inorganic growth strategy in corporate restructuring. Obviously, the business model changes so also management positions, financial structure with sole object of enhancing the value to shareholders. Mergers, demergers, reverse mergers, disinvestments, takeovers, joint ventures, franchising, strategic alliances, slump sale are some options that are adopted as a measure to achieve inorganic growth strategy in Corporate Restructuring. Orderly redirection of activities, redeployment of surplus cash in other enterprises, exploiting inter-dependence among present or future businesses within corporate portfolio, risk reduction and development of core competencies are some of the objectives within overall objective of increasing the value to the shareholders on resorting to restructuring. Corporates can achieve the economies of scale through vertical, horizontal integration of enterprises for maximization of profits.