Investigating the Impact of Business, Financial, and Debt Restructuring on Enterprises

Abstract

The purpose of this paper is to explore the various methods of corporate restructuring and the motivations and results behind them. In the context of a globalized economy, many companies choose to restructure to adapt to the changing market environment and challenges. Through the research method of literature review, we focus on three main restructuring methods: business restructuring, financial restructuring, and debt restructuring, and carry out in-depth analysis through the cases of Wesfarmers and Coles, Dell, and General Motors. The results show that each recombination method has its specific advantages and disadvantages. Business restructuring focuses on the business and strategic aspects of the company and may result in greater operational efficiency and risk reduction. Financial restructuring focuses on the capital structure and financial health of the company but may bring financial risks. Debt restructuring is a solution to financial stress and is designed to ensure the long-term survival of the company. Different companies choose different restructuring strategies according to their specific situations and needs.