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The act or process of changing the terms on the assets and/or liabilities of a company. That is, a company may consolidate its debts, significantly change the size and scope of its operations, and take other measures to reduce the strain of continuing operation. Most companies restructure either as part of a bankruptcy or as an effort to avoid it. If the company is restructuring as part of a corporate bankruptcy, it is said to be in receivership.
- a change in a firm's STRATEGIC DIRECTION involving, for example, its expansion into new business activities (see DIVERSIFICATION) and its withdrawal from some existing activities (see DIVESTMENT).
- a change in a firm's internal ORGANIZATION involving, for example, the replacement of a highly centralized decision-making structure by one based on individual STRATEGIC BUSINESS UNITS. See ORGANIZATIONAL STRUCTURE, BUSINESS PROCESS RE-ENGINEERING.