There are various methods for the firms to enter into a new business and restructure the existing one. Firms use following methods for building:

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  • Start-up route: In this route, the business is started from the scratch by building facilities, purchasing equipments, recruiting employees, opening up distribution outlet and so on.
  • Acquisition: Acquisition involves purchasing an established company, complete with all facilities, equipment and personnel.
  • Joint Venture: Joint venture involves starting a new venture with the help of a partner.
  • Merger: Merger involves fusion of two or more companies into one company.
  • Takeover: A company which is in financial distress can undergo the process of takeover. A takeover can be voluntary when the company requests another company to take over the assets and liabilities and save it from becoming bankrupt.
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