The paper contends that many corporate businesses that employ restructuring achieve new growth opportunities. Furthermore, based on the extended example used in this paper it is clear that restructurings fundamentally improves the firm’s operating financial performance as measured by revenue, profit margin, return on asset, and the asset turnover ratio.
Additionally, restructuring, transforms corporate market positively in the sense that market reaction to the restructuring announcement was positive and statistically significant.
However, the challenge remains to the process and procedures employed in corporate restructuring that can lead the firm to differentiate the way it produces a product or/and service by differentiating the techniques, process, or material used; and produce a differentiated product or/and service it offers. This can be manifested through: producing viable and cost effective alternatives to customers; focus on revenue activities and value creation processes; and offer price flexibility and business precision. This way, corporate restructuring can be seen as to not only help restructuring firms, but also represents a capital reallocation in response to changing market conditions which has the potential to provide significant social benefits and improve overall productivity.
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