This paper examines the restructuring of state assets in markets deregulated by privatizations and investment liberalizations. We show that the government has a stronger incentive to restructure than the buyer: A firm restructuring only takes into account how much its own profit will increase. The government internalizes that restructuring increases the sales price not only from the increase in the acquirerโ€™s profit, but also from a reduced profit for the non-acquirer, whose profits decrease due to its rivalโ€™s restructuring. We also identify situations where a slow sale can significantly reduce the sales price because of strategic investment and product market effects.