In this era of increased competition, every time a company must evaluate its performance, and conduct a series of improvements, future growth and be competitive. These improvements will be continuous, so that the better performance of the company and can continue to excel in competition, or at least survive. One strategy to improve and maximize the performance of the company is by way of restructuring.
If we hear the term or word of restructuring, that there dipikiran us, as if talking about companies that are declining. This is caused by the definition of restructuring itself, which, among others as follows:
1. Restructuring, often referred to as downsizing or delayering, involving the reduction of the company in the field of labor, work unit or division, or reduction in the level positions within the company oganisasi structure. Reducing the scale of this company needed to improve the efficiency and effectiveness (David, F, 1997:226)
2. Restructuring strategies used to find a way out for companies that do not grow, get sick or there is a threat to the organization or industry on the verge of significant change in the door. Owners generally make changes in team management units, changes in strategy, or the introduction of new technology in the company. Furthermore, often followed by acquisition to build a critical section, sell the parts that are not necessary, in order to reduce the acquisition cost effectively. The result is a strong company, or an industrial transformation. Restructuring strategy requires a management team who have the insight to look forward, when the company was undervalued at that point at the position or industry ripe for transformation. The same insight needed to make turn around the business units, even in an unfamiliar business (Mintzberg & Quinn, 1996:732).
3. The restructuring aims to improve and maximize the performance of the company (Djohanputro, Bramantyo, 2004:2).
Yet every time the company made improvements, whether on a small scale or large scale, the aim is to improve performance. Of course, companies should not wait for a new decline in maintenance, because it could be late, so repairs should be carried out continuously. In general, the term used if the company wants to restructure to improve overall, and its purpose is to improve and maximize performance.
At this time, if you read in the newspapers, many companies that do corporate actions, which aim is to strengthen, improve and maximize performance. To understand what and how is the restructuring that will maximize shareholder value, below outline I tried to make the footage on these problems, which I take example from the book by Mr. Bram (former professor of mine) as follows:
a. Corporate Restructuring purposes.
The restructuring aims to improve and maximize performance. For companies that have been going public, maximizing the value of companies characterized by high stock prices, and prices can be perched at the top level. Persistence of the stock price is not a game of market participants or the results of the stock fry cooking, but it really is a reflection of investors' expectations about the future of the company. In line with the company already went public, selling price also reflects investors' expectations for the performance of the company's future. As for who is not going public, maximizing corporate value is reflected in selling prices of these companies.
b. Mapping portfolio and Stategic Business Unit (SBU) Company
The first thing to do is mapping the portfolio, to see how the ability of each asset in providing added value to the company. Is there an idle asset, or assets that are less productive, and do not need to be maintained because it was not in line with company strategy? The non-productive assets and not in line with corporate strategy should be set aside for sale.
Then the mapping, SBU, each SBU is assessed based on several characters, such as: a) the life cycle, b) the market, c) growth and cash flow. Furthermore, each SBU is assessed, whether still in line with company strategy. SBU appropriate, can be associated with an increase in value, or provide Economic Value Added (EVA) to the company as a whole.
c. SBU assessment
There are several methods for valuing the SBU. One common way is to calculate the present value of expected cash flows can be generated by the respective SBU. Net Present Value (NPV) of cash flows represents the value of the SBU. (Catt: there are 10 ways SBU assessment stage, will be submitted in a separate article).
d. Improving the portfolio and the SBU.
After valuation, the remaining assets and SBU only really fit with company strategy. However, asset quality and SBU needs to be evaluated, in order to operate optimally. After learning a variety of possible problems of assets, management needs to develop a range of alternative actions against those assets, with the aim of improving the productivity of the asset.
e. SBU value maximization.
The value of an SBU based on its cash flow health, particularly the pattern of cash flow prediction. SBU means of maximizing the value of the management efforts so that cash flow projections SBU since the restructuring will always be healthy and improved from time to time.
Things that need to be considered in maximizing the value of SBU:
1. Make sure that no potential assets are stored. Assets that often do not realize is that intangible asset, such as: a) the name of both companies, which can be lost if not dimanfaatkan.b) Ability to research and development, which is a potential for the company. c) The impact of marketing, such a vigorous campaign, which can position SBU products in consumers' minds.
2. Make sure that the funding company's healthy. Sound financial structure contributes a good part in maximizing the value of the SBU.
3. Make sure the organization supports any strategy in the maximization of the SBU.
f. Leadership Factor
Factors of leadership is one key to the success of corporate restructuring process. Without a good leader, the restructuring will be stopped in the middle of the road. Requirements first and foremost a leader in the restructuring process is a visionary. A leader also needs to be restructured to be an agent of change. Restructuring process, how good will always get resistance from some employees.
Leaders also need to have the ability to leverage (empowerment) of employees. Identification of assets and SBU well is a good starting point for restructuring. Identification error is fatal, and therefore makes the subordinate is able to do heavy tasks which can not be ignored.
If we hear the term or word of restructuring, that there dipikiran us, as if talking about companies that are declining. This is caused by the definition of restructuring itself, which, among others as follows:
1. Restructuring, often referred to as downsizing or delayering, involving the reduction of the company in the field of labor, work unit or division, or reduction in the level positions within the company oganisasi structure. Reducing the scale of this company needed to improve the efficiency and effectiveness (David, F, 1997:226)
2. Restructuring strategies used to find a way out for companies that do not grow, get sick or there is a threat to the organization or industry on the verge of significant change in the door. Owners generally make changes in team management units, changes in strategy, or the introduction of new technology in the company. Furthermore, often followed by acquisition to build a critical section, sell the parts that are not necessary, in order to reduce the acquisition cost effectively. The result is a strong company, or an industrial transformation. Restructuring strategy requires a management team who have the insight to look forward, when the company was undervalued at that point at the position or industry ripe for transformation. The same insight needed to make turn around the business units, even in an unfamiliar business (Mintzberg & Quinn, 1996:732).
3. The restructuring aims to improve and maximize the performance of the company (Djohanputro, Bramantyo, 2004:2).
Yet every time the company made improvements, whether on a small scale or large scale, the aim is to improve performance. Of course, companies should not wait for a new decline in maintenance, because it could be late, so repairs should be carried out continuously. In general, the term used if the company wants to restructure to improve overall, and its purpose is to improve and maximize performance.
At this time, if you read in the newspapers, many companies that do corporate actions, which aim is to strengthen, improve and maximize performance. To understand what and how is the restructuring that will maximize shareholder value, below outline I tried to make the footage on these problems, which I take example from the book by Mr. Bram (former professor of mine) as follows:
a. Corporate Restructuring purposes.
The restructuring aims to improve and maximize performance. For companies that have been going public, maximizing the value of companies characterized by high stock prices, and prices can be perched at the top level. Persistence of the stock price is not a game of market participants or the results of the stock fry cooking, but it really is a reflection of investors' expectations about the future of the company. In line with the company already went public, selling price also reflects investors' expectations for the performance of the company's future. As for who is not going public, maximizing corporate value is reflected in selling prices of these companies.
b. Mapping portfolio and Stategic Business Unit (SBU) Company
The first thing to do is mapping the portfolio, to see how the ability of each asset in providing added value to the company. Is there an idle asset, or assets that are less productive, and do not need to be maintained because it was not in line with company strategy? The non-productive assets and not in line with corporate strategy should be set aside for sale.
Then the mapping, SBU, each SBU is assessed based on several characters, such as: a) the life cycle, b) the market, c) growth and cash flow. Furthermore, each SBU is assessed, whether still in line with company strategy. SBU appropriate, can be associated with an increase in value, or provide Economic Value Added (EVA) to the company as a whole.
c. SBU assessment
There are several methods for valuing the SBU. One common way is to calculate the present value of expected cash flows can be generated by the respective SBU. Net Present Value (NPV) of cash flows represents the value of the SBU. (Catt: there are 10 ways SBU assessment stage, will be submitted in a separate article).
d. Improving the portfolio and the SBU.
After valuation, the remaining assets and SBU only really fit with company strategy. However, asset quality and SBU needs to be evaluated, in order to operate optimally. After learning a variety of possible problems of assets, management needs to develop a range of alternative actions against those assets, with the aim of improving the productivity of the asset.
e. SBU value maximization.
The value of an SBU based on its cash flow health, particularly the pattern of cash flow prediction. SBU means of maximizing the value of the management efforts so that cash flow projections SBU since the restructuring will always be healthy and improved from time to time.
Things that need to be considered in maximizing the value of SBU:
1. Make sure that no potential assets are stored. Assets that often do not realize is that intangible asset, such as: a) the name of both companies, which can be lost if not dimanfaatkan.b) Ability to research and development, which is a potential for the company. c) The impact of marketing, such a vigorous campaign, which can position SBU products in consumers' minds.
2. Make sure that the funding company's healthy. Sound financial structure contributes a good part in maximizing the value of the SBU.
3. Make sure the organization supports any strategy in the maximization of the SBU.
f. Leadership Factor
Factors of leadership is one key to the success of corporate restructuring process. Without a good leader, the restructuring will be stopped in the middle of the road. Requirements first and foremost a leader in the restructuring process is a visionary. A leader also needs to be restructured to be an agent of change. Restructuring process, how good will always get resistance from some employees.
Leaders also need to have the ability to leverage (empowerment) of employees. Identification of assets and SBU well is a good starting point for restructuring. Identification error is fatal, and therefore makes the subordinate is able to do heavy tasks which can not be ignored.
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3 comments:
nitip link yaa :)
wah good opinion bro...i like with your articles...
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