Corporate restructuring is the concept of reorganizing a
company's internal structure for the sake of some purpose, such as greater
profit or greater organizational control and efficiency. The internal structure
which is modified in corporate restructuring could include the structure of the
company in terms of ownership, as the actual ownership of the company might
shift between different individuals to greater or lesser extents, or it could
include the legal nature of the company.
For example, corporate restructuring might actually cover
the shift from a partnership to a corporation, or vice versa. Corporate
restructuring might also cover the shift from a partnership to a limited
liability partnership.
Corporate restructuring, as mentioned above, might be
performed by a company at any given time for the sake of a particular goal, but
it might also be necessitated by other factors, such as a merger or demerger,
or a buyout. Bankruptcy is also a common source of the need for corporate
restructuring, as a company will likely have to perform corporate restructuring
in order to make sure that it can best pay off its debts.
Corporate restructuring might sometimes involve modification
of corporate identity, but not always. Corporate identity is the term most
commonly assigned to a company's branding and logo and similar elements of a
company.
