Corporate portfolio restructuring

Restructuring can involve acquisitions, divestments, demergers, closures or resource shifts intended to improve strategic fit or value. It differs from merely rebalancing an investor’s securities portfolio and from recognising an accounting restructuring provision. Evaluate cash proceeds, costs, tax, future cash flows forgone, interdependencies and implementation risks. Selling a weak unit can release resources but may also remove useful capabilities or shared economies; a profitable unit can also be sold for strategic reasons. The value case depends on the alternatives and transaction terms rather than the label restructuring.