In the context of a roller-coaster market, large and small corporations must find ways to reduce load, lean, renew to adapt and survive – and one of the "leverages" of power that many businesses are choosing is restructuring through M&A (Mergers & Acquisitions). But wait, M&A is not just about "trillion billion" deals that make headlines; But behind that is also a profound strategy to separate - sell - merge to reduce bloat, avoid "bulkyness" and increase the resilience of the operating system. Today, let's learn and explore with NewWindPlease support the corporate structure through M&A.

I. Why is it necessary to restructure the corporation?

In the corporate world, growth is what everyone wants. But did you know, too fast and uncontrolled growth can also lead to... "organizational obesity"? That is, the machine becomes heavy, bulky, and operates slowly, like a hundred-ton ship trying to climb a mountain pass with... a motorbike engine.

Restructuring is not a temporary trend or a "sad story" of the business, but a strategic step to streamline, refresh, and speed up.

So what are the signs that a corporation needs to "lose weight"?

• Complicated management structure with many layers, making decision making slow as a crawl.     
• Many subsidiaries operate overlappingly, even competing with each other.   
• Management costs increase but efficiency decreases, profits cannot keep up with scale.
• Loss the ability to adapt to change - the market turns around, the whole system struggles to keep up.

When hey, restructuring is not an option, but a necessity. And among restructuring tools, M&A (Mergers & Acquisitions) stands out as a "professional cosmetic doctor" - helping to cut, pare, and reassemble excess and missing parts to make the business leaner and cleaner.�e and durable.

II. M&A - A strategic weapon in restructuring

M&A is not just for "billion dollar" deals between giants on the stock exchange. In essence, M&A is a set of flexible tools in the restructuring process, including:  

• Separating parts that are no longer suitable or have their own development potential.
• Selling ineffective operations that are not part of the long-term strategy.
• Merging similar units to optimize costs and resources.

You can imagine M&A like a set of kitchen knives: paring knife, slicing knife, bone cutting knife - each type has its own uses, butall with the goal of beautifying the corporate dish.

M&A in the context of restructuring helps:

• Cut off "ineffective" parts (like removing excess fat).
• Put effort into core parts, with profit potential.
• Create organizations that are flexible, agile, easy to fund and easy to grow.

III. "Separation" - Not separation, but liberation of potential

Separating a business sounds like "internal divorce", but in fact this is a tactic to help small units become stronger when they are no longer confined to a cumbersome apparatus.

• When to separation?
• The business segment has its own potential but is "overwhelmed" in the group. 
• That unit needs to call for independent capital and attract suitable investors.
• The business wants to be more flexible in operating, without needing to consult the "parent company" every time it makes a decision.

Example reality:

Imagine a corporation consisting of 5 business segments: manufacturing - logistics - e-commerce - real estate - technology. In particular, the technology segment is developing very quickly but always has to "wait for the opinion of superiors" who are used to traditional thinking.

• Separating the technology segment into an independent legal entity helps:
• Operate more flexibly    
• Call for startup-oriented capital
• Recruit young people to better fit the culture

Separation does not weaken you, on the contrary: it helps you eliminate "unnecessary lines" for each department maximize your abilities.

IV. "Sell" – When it's not a good fit, keeping it will only slow the ship

If there is one principle that successful businesses often apply, it is: "focus on what you do best". And to do that, you need to know when to... sell the rest.

• What should be considered for sale:
• The business continues to lose money, even though"rescued" many times.
• The operating unit is no longer consistent with the corporate strategy.
• Idle assets: unused factories, unprofitable subsidiaries, ineffective shares.

Sell for what?

• Create cash flow: use sold capital to invest in more profitable segments.
• Restructure investment portfolio: withdraw from “retreating” industry, step into potential market.
• Focus resources: both human resources, budget and time on key areas.

=> Most importantly: selling is not losing, but choosing the right path to win in the long run.

V. "Merger" - When two "just enough" things can create a "very strong" one

This is a neat step but carries enormous power if done correctly. Mergers can take place between:  

• Two internal departments with similar functions
• Two subsidiaries in the same field
• A business within the group with an external strategic partner in addition

Benefits of merger:

• Increase market share size
• Save operating costs    
• Take advantage Utilize existing teams, assets and technology
• Immediately increase competitivenesswithout having to “build from scratch”

But it is also important to note:

• Different corporate cultures can cause conflicts. 
• Unclear division of power can easily create internal crises.
• If not properly consulted, mergers can be "so messy".

Don't be afraid to "innovate" to break through labour. Restructuring does not mean failure. On the contrary, it is a sign that the business is maturing, knowing how to look back and innovate to reach further. If you feel like "the machine is starting to wheeze", don't rush to blame the market or human resources. Ask yourself: Is it time to restructure? And if the answer is "yes"."at any time", remember that NewWind is always ready to accompany you to:compact SPLIT - reasonable SELL - strategic MERGER - FOCUS to accelerate!