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 reduce costs
Benefits of restructuring the company
There are many benefits as to why a company might restructure. Some benefits are financially such as reviving the decline in business, increasing a company’s value, and preparing it for sale or transfer to the next generation. Other benefits involved, gaining a competitive advantage, such as helping a company position itself for growth, allowing for the addition of new accounts or enabling expansion into other geographical areas. Two words, however sum up the overall benefits of corporate restructuring: Survival and Success.
Determining what areas need to be restructured
Identifying weaknesses and creating detailed short and long term plans
Implementing short-term corrective action
Calculating and securing funding
Evaluating 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, the financial experts at Get Me Finance can help business owners deal with these challenging issues.