Introduction According to Gilson (2001), corporate restructuring is what happens when a corporate entity revises in a major way, the various contracts that radically exist between it and all its stakeholders who include its employees, creditors and shareholders. There are various reasons for restructuring that I shall look at later but the result of restructuring is that it substantially alters the company’s organizational structure, shareholding and market value (Wruck 1994). In many corporations, restructuring is a major decision that requires approval from the highest levels of authority in the company. Restructuring more often than not brings about a huge value gap between the restructured and the pre-restructured entity (Jensen 1993). Before an organization can restructure, it must make several preliminary steps which mostly have to do with seeing various consents from relevant parties and also sorting out possibly controversial issues such as the laying off of employees or the sale of shares (Mitchell & Mulherin 1996). In addition, the company needs to consider the three hurdles that are associated with restructuring (Gilson 1997). These are; design, execution and marketing. The issue of design looks at the type of restructuring, its appropriateness and its efficiency in eliminating the causative agent for the restructuring. Execution of the restructuring plan is probably the most critical part of corporate restructuring. The company must anticipate the challenges that are likely to occur during the implementation and make provisions for them in a satisfactory manner. The plan should be designed in a manner that execution is achieved in a way that minimum barriers are encountered but value is maximized. The last part to be considered is marketing the new entity formed. The design plan of the restructuring must include this part since markets are usually keen on the change in value and character in the restructured company. This is because there is no guarantee that the restructuring programme will yield increased value (Gordon 1994). Causes of restructuring Gilson (2001) states that there are various reasons why companies feel a need to restructure. The first reason is definitely to curb poor financial performance. Gilson states that the warning signs for a poorly performing company are very clear. These come in the form of stagnant sales, accounting losses, loss of customer base and failures in stock prices. Often, poor financial performance leads the company to default in its debts which may lead to bankruptcy. While debt restructuring can be costly and strenuous for the company there are some legal alternatives available to the company such as filing for bankruptcy which give the company a clean break. However, the legal approach might leave the company’s image dented hence the preference for arranged restructured processes. “The other reason for restructuring is to accommodate a new corporate strategy or to strategically place the company in a position to take advantage of an available business opportunity” (Gilson 2001). A good example of such restructuring is an equity spin-off. In spin offs a company that had previously diversified its businesses splits these diversified businesses into autonomous entities each with their own separate stock. They make economic sense where the reason for poor