Corporate reorganization, or restructuring, is the reorganization, rectification, and integration of the property rights, debts, assets, and management structure of an enterprise. The purpose of corporate reorganization is to improve its management, strengthen its competitiveness in the market, and promote innovation.
During a corporate reorganization, shareholders pursuit preservation and appreciation of their capital by asset reorganization, debt reorganization, and property rights reorganization in order to optimize the asset structure, liability structure, and property rights structure of the enterprise.
The corporate reorganization must be planned based on the company's own characteristics, operational strategies, and other factors. The key is choosing a reasonable restructuring model and method, so as to create corporate value and realize capital appreciation. Business decision-makers usually use financial analysis to clarify the sources of corporate restructuring value, evaluate the benefits of reorganization, and identify the beneficiaries of the restructuring.