Defensive Restructuring
A strategy where a company reorganizes its assets and liabilities to make itself less attractive to potential acquirers, often as part of an anti-takeover defense.
Implications
The reorganization of a company�s structure, assets, or operations to protect against hostile takeovers, financial distress, or competitive threats, often involving divestitures, spin-offs, or changes in governance.
Example
Example: A retail chain undertakes defensive restructuring by selling off non-core assets and reducing debt to make itself less attractive to potential acquirers while strengthening its financial position.
Related Terms
Different from proactive restructuring, which aims to improve efficiency or growth, defensive restructuring is specifically designed to protect the company from external threats.
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