Company Restructuring can be driven by a need for change in the organisational structure or business model of the company, it can be driven by the necessity to make financial adjustments to its assets and liabilities. Frequently it involves both.
Companies restructure for a variety of reasons:
To reduce costs
To concentrate on key products or accounts
To incorporate new technology
To make better use of talent
To improve competitive advantage
To spin off a subsidiary company
To merge with another company
To increase profitability
Benefits of restructuring the company
There are a number of benefits associated with company restructuring. Some benefits are financial such as reviving a decline in business, enhance a company’s value, and preparing it for sale or transfer to the next generation. Other benefits include gaining a competitive advantage, such as helping a company position itself for growth, allowing for the addition of a new accounts or enabling expansion into other geographical areas. Two words, however, sum up the overall benefits of corporate restructuring: survival and success.
First – determine what areas need to be restructured
Next – identify weaknesses and create detailed plans
Next – implement short-term corrective action
Next – calculate and secure funding
Next – restructure
Finally – evaluate the results!
Companies face many difficulties dealing with the frequent changes in today’s economy, and Company Restructuring can be a short and long-term answer to maintaining company viability. Whether the reason for Company Restructuring is to save the business or strategically reposition itself for the future, Goldmann and Sons PLC can put you in touch with financial experts who can help business owners deal with these challenging issues.