Reorganization definition
Accounting Tools
JUNE 29, 2024
What is a Reorganization? A reorganization involves the reordering of a firm's activities to more tightly focus on its core capabilities. All other activities are eliminated, spun off, or outsourced. The remaining operations may be reshuffled into a different organizational structure , with revised employee job descriptions. Accompanying these changes is a revamping of the firm's capital structure , which may include the restructuring of debt agreements or the conversion of debt into equity.
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