There are few things in this market that are harder than reinventing a business, but Jim Cramer sees reinvention as the driver behind the activity on the averages lately.

On Monday morning, Pfizer moved to reinvent itself when it agreed to purchase Allergan in an all-stock deal to create a colossus with a low-tax Irish domicile.

Allergan's overseas tax status will allow Pfizer to become more efficient with its overseas capital, and the companies are confident that this reinvention will be a good one.

Allergan will provide a whole host of new drugs, including Botox, which has gotten more expensive of late, even as the company keeps coming up with new ways to use the drug beyond wrinkles and migraines. Cramer suggested that Pfizer could now split itself into a slow-growth, old-drug company, and a new, fast-growth pharma company following the merger.

Meanwhile, investors are being paid to wait with 3.6 percent in yield.

However, the market did not like the deal because Allergan already has so much going on its own and partially because it is fairly dilutive for Pfizer, given the length of time until the deal closes.

"I know that my charitable trust bought Allergan because we believed in [CEO Brent] Saunders' big number vision for the future. I still do, but the tie-up with Pfizer seems to make the turn more convoluted. Reinvention in progress?" the "Mad Money" host said.

Investors who are interested in arbitrage might think otherwise, but Cramer believes there is real value being created in the long term with this deal.

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Another reinvention in the works is Alcoa, which is largely known as a producer of aluminum. Under the leadership of CEO Klaus Kleinfeld, the company has been trying to reinvent the use of metal by finding different ways to integrate aluminum into trucks and bulk up on aerospace.

Earlier in the year, Kleinfeld decided to split the proprietary aluminum side of the business from its raw metal side. On Monday morning news broke that activist Paul Singer's Elliot Management purchased a 6.4 percent stake in the company, as Elliott believes that Alcoa could be worth more.

"Candidly, I think this is an odd one because the activist is trying to reinvent the reinvention, hence Alcoa's 4 percent rally today," Cramer said.

Ultimately, some reinventions can happen overnight, and some take a long time. Cramer loves reinvention because it is how companies can turn themselves around and take it to the next level.

"These reinventions require great skill. It's not easy, but it can happen and when it does, shareholders like you get richly rewarded," Cramer said. (Tweet This)

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