Rate this article

Investing Megatrends: Restructuring

Highlights

  • Mounting global competition is putting pressure on all companies.
  • Companies that restructure are often undervalued in the short term.
  • Successful restructuring can create shareholder value over time.

In an increasingly globalized marketplace, companies are constantly facing new competitive threats to their businesses: ambitious rivals emerge to take away market share; nations change how they regulate industries; new markets may open, but firms find themselves unable to capitalize on them. Suddenly the old ways of doing business are no longer efficient or even effective. In today’s world, those pressures are only increasing. It’s a case of adapt to survive.

Instead of just letting their businesses fade away, forward-thinking firms recognize these threats and restructure themselves to strengthen their positions, also potentially benefitting investors. In the short-term, many companies that restructure are misunderstood, their retooling seen as a sign of weakness. But over the long term, the changes those companies make can create stronger businesses that may provide substantial rewards to their shareholders.

Indeed, restructuring can be a fertile source of growth, particularly within the complex structures of developed world economies, where efforts to specialize and increase efficiency may potentially lead to attractive investment opportunities.

Access Corporate Restructuring: A Global Opportunity, part of our Investment Megatrends series that also includes New Technology, Mass Affluence and Aging.

LL0000.147.1213

Mutual funds are subject to market risk and volatility. Shares may gain or lose value.

Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.

Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
225 Liberty Street, New York, NY 10281-1008