Corporate Restructuring is the process of redesigning one or more aspects of a company. It is a corporate action taken to significantly modify the structure or the operations of the company. This usually happens when a company is facing significant problems and is in financial jeopardy. Often, the restructuring is referred to the ways to reduce the size of the company and make it small. Corporate restructuring is essential to eliminate all the financial troubles, to improve the performance of the company, to position the company to be more competitive, or to poise the company to move in an entirely new direction.
We advise corporate entities to achieve the following broad objectives to become an globally competitive entity:
- Expand the business or operations of the company and diversification of business.
- Carry on the business of the company more economically or more efficiently.
- Focus on its core strength.
- Cost Reduction, by deriving the benefits of economies of scale.
- Improve the profitability and liquidity position.
- Build an efficient capital structure and better management of working capital.
- Access to better technology.
- Improve the debt-equity ratio and other balance sheet ratios.
- To improve the effectiveness of management.
- To have a better market share.
- Become globally competitive entity with most effective product, pricing and service mix.
- Significant overall improvement in the enterprise valuation/ market capitalization.
METHODS OF RESTRUCTURING
The usual methods we adopt to restructure a corporate entity has been given below
- Mergers and acquisitions
- Reverse mergers
- Joint ventures
- Tender offer
- Equity Carve-outs
- Share repurchases
- Exchange offers
Change in Ownership
- Private Equity
- Leveraged Buyouts
- Management Buyouts
- Private Placements
We not just identify problems of where money is being lost, but also offer solutions that a company can implement in order to solve those problems. We also help a company through the process of restructuring by developing forecasts of what to expect and making sure the company is able to secure the capital available to make those changes. Our support in corporate restructuring can help restore, preserve and enhance the value of an organization.