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Finance & Restructuring Services

Finance & Restructuring is the reorganisation of a business's assets and liabilities. The process is often associated with corporate restructuring, where an organisation's overall structure and its processes are revamped.

Reasons for Organisational Restructuring
1. Changing business environment
The business world is and always will be a dynamic environment. It never settles on one point and keeps on changing as time flies. In certain times, some industries may suffer a massive blow due to external factors.

2. New methods of operation
As time goes by, there will always be the entry of new methods into operations. These can be telecommunication, new and improved working systems, better employee policies, rise of remote working culture, technological advancements, etc.

3. Buyout
A buyout is wherein a party acquires the rights of a controlling interest in the business for a sum of money. In such a case, restructuring occurs in the business proceedings.

It is because the buyer may want to rebrand the company and start-over again. In these cases, legal and organizational structure changes are necessary, which gives rise to the restructuring process.

4. A different direction
“Change is the law of life and those who look only to the past or present are certain to miss the future.” – John F. Kennedy
Often, a difference in direction may be the answer to poor business performance. Understanding this, most entrepreneurs change their business model in the hope of better profitability.

While some may change their products/services, others may choose a different space altogether. Both of these shifts require a rethink of the current business. In such a scenario, the need for proper organizational restructuring is imperative.

These were some of the reasons where organisational restructuring can take place. Based on these scenarios, there are also many types of restructuring that you can examine to best suit your needs.

Restructuring

Types of Organisational Restructuring
1. Mergers and Acquisitions
This restructuring takes place in case of a merger or acquisition. A merger is a situation wherein two companies combine to do business. An acquisition is wherein a company absorbs another by buying the entire stake in the business.

2. Legal Restructuring
A restructuring as such takes place when the changes in a company pertain to legal norms. These can be changes in ownership, legal business paperwork, agreements, etc.

3. Financials
Financial restructuring arises when there is a change in the capital structure of the business. These can be changes in debt structuring, equity, etc.

4. Repositioning
This change pertains to a transition to a new business model. An example of this can be when an IT firm selling software products changes to being a service provider.

5. Cost-Reduction
A cost-reduction restructuring takes place to cut costs in the administrative and operations section. These can be automating procedures, downsizing, etc.

6. Turnaround
Turnaround is the restructuring of a huge part of the company. It involves changes in the operations side, administrative, products, or services.

7. Divestment
Divestment is a restructuring procedure wherein a company sells an underperforming part of the business in the market.

8. Spin-Off
It is a restructuring process that employers use to attain a higher valuation of a part of the company. It involves making a particular business unit to be a company in itself while retaining ownership.

These are eight of the organisational restructuring types that companies commonly use. After deciding on one of these, employers must keep in mind certain things during the process.

 

Capabilities

A business strategy is the means by which it sets out to achieve its desired ends.

If you have been selected for a business audit, here is what you need to know.

Restructuring your company could restore its viability and improve its liquidity position.

Benefits

Marketing Research

Research helps you plan the best way to get your product from the manufacturer to the retail shelf. In addition to deciding which retailers should carry your product, you should determine where your inventory will be held.

Listen to your team

Go to your team, and tell them you want to make a fresh start. Tell them you want them to enjoy their jobs more and get more done.

Analyze the Problem

In this problem solving step, you will want to figure out what caused the problem, what the problem looks like at this moment, and the urgency of addressing the problem.