WHAT RESTRUCTURING OPTIONS ARE AVAILABLE FOR A BUSINESS IN NIGERIA?

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The restructuring options available for a business in Nigeria include:

  1. Merger: The combination of two or more companies into a single entity.

  2. Acquisition: The purchase of one company by another, resulting in the acquiring company obtaining control of the target company.

  3. Joint venture: A partnership between two or more companies to undertake a specific project or business venture.

  4. Demerger: The separation of a company into two or more separate entities, usually as a result of a divestiture.

  5. Liquidation: The process of selling off the assets of a company and distributing the proceeds to its creditors and shareholders.

  6. Debt restructuring: The reorganization of a company’s debt to improve its financial stability and reduce its debt burden.

  7. Capital restructuring: The adjustment of a company’s capital structure, including the issuance of new equity or debt, to improve its financial position.

 

These options can help a business in Nigeria address financial difficulties, increase efficiency, and enhance its competitiveness. However, it is important to carefully consider the potential benefits and drawbacks of each option and seek professional advice before proceeding with any restructuring plan.

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