Best methods to adapt your organization for profitability and efficiency
Although restructuring a corporation may seem like a daunting task, a methodical approach can help improve the financial stability of your organization, please stakeholders, and benefit the operational aspects of your business with ease.
With support from an experienced corporate consulting team, restructuring your organization is no longer an insurmountable project, but rather a way to improve your business, consolidate and restructure debt, and reestablish the operational design and workflow.
No need to close your doors, file bankruptcy, or take on even more debt to keep your corporation functioning. Join forces with specialty consultants, and reorganize your business so it can run profitably for the long haul.
The Corporate Restructuring Process
Most businesses opt to restructure to increase profitability. This may be because there are lucrative ways to grow business value, or because there are looming financial problems that need to be resolved.
To negotiate an internal restructuring of a corporation, financial and technical experts can provide insight and organize a clear plan for improved operational performance.
A team of legal experts and corporate organizational experts can strategically redevelop your approach by reviewing market trends and changing market conditions. They will also be able to evaluate the industry projections, supply chain organization, and internal processes that can lead to a more effective and profitable system.
During the corporate restructuring, aspects of the corporation that may be altered include:
- Procedural updates
- IT systems and networks
- Brick and mortar locations and offices
- Legal arrangements
- Departmental reconfiguration
- Materials sourcing
Restructuring an organization may be as simple as tweaking the assembly line, and it could be as complex as an entire overhaul of the internal and external working patterns.
Perhaps your corporation needs interim management services, overall performance improvement, or debt advisory. If your organization needs to improve overall operations and strategy or develop a plan for sustainable business success. These processes can be considered and implemented during corporate restructuring.
The Hunter Stevens team is equipped to help you define a new approach and go forward in an economically sound way.
Restructuring to solve financial challenges
Corporations often opt for restructuring as a way to absolve debt, minimize costs, liabilities, and risks, and ultimately reposition themselves in the ever-changing market. This is often the case if an organization did not develop a sound financial strategy upon inception. This is why it is advisable to establish company finance policies for a corporation as part of the foundation of the company structure.
In some instances, an internal or external crisis has occurred which is the proximate cause of a restructure. If the organization does not restructure in this case, the corporation could go bankrupt.
Corporate crises that could prompt restructuring include sudden market changes, supply chain issues, legislative or trade commission changes, corporate compliance changes, shareholder concerns, or investor withdrawal.
During these crisis circumstances, an expert ally can support your leadership team to assess the situation and make recommendations to resolve the issues as quickly and efficiently as possible. This will help your corporation to maintain (or increase) profitability and minimize damage due to the crisis.
A corporate consulting team can help you to reposition your organization first with stabilization, then with growth.
In many cases, an organization must ‘refinance’ or restructure debt so that it is consolidated and creditors can be paid off. A restructuring can support this process through production evaluation and a review of the expenditures to tighten up loose ends and reduce costs. This could include leasing out assets or liquidating inventory. The right approach will depend on the specifics of the financial situation of your business.
Restructuring before a sale or buyout
Another common reason corporations restructure their operations or finances is because they are preparing for a buyout, sale, merger, acquisition, or another change in ownership.
These are common changes for large-scale corporations that are not always precluded by financial struggle. Many profitable companies sell when the market value is high, or opt to acquire a relevant company simply because it is doing well. In these cases, restructuring for financial integrity is not needed, but rather an approach that can unite two (or more) separately operating companies into one functional organization.
During a buyout, corporate restructuring simply allows two previously distinct business operations systems to integrate in an economically sound way.
Another consideration is that while a corporation is under contract to become acquired, all internal operations should be stabilized. It’s a good time to ensure that processes and performance in the organization are established.
Corporate Restructuring with Hunter Stevens LLC
To minimize debt, increase profitability, and achieve long-term sustainability, a corporation can restructure to function in a streamlined manner.
Whether your organization is going through a restructuring to solve financial issues and avoid bankruptcy, or is merging with another company and needs to streamline internal procedures, redefining the corporate structure can be challenging.
The expert corporate consultants can work with your leadership team or advisory board to establish new procedural practices, financial systems, or supply chain management techniques to resolve internal (and external) issues and return your corporation to fully functioning order again.
Contact our office to determine the best approach to a corporate restructuring for your organization.