Business restructuring must be considered as a natural and positive process, despite the fact that it can make a major change for any company and almost always occurs in times of crisis. Don’t forget that it is the best way to regenerate to increase productivity and get out of any adverse situation successfully. In addition you can always count on our team of experts in the whole process.

It does not always act fast enough before an immediate threat and business restructuring takes place too late. Becoming a more complex operation where it is necessary to undertake at the same time a financial and operational restructuring, with the natural lack of resources. That is why it is important to recognize in time when it is necessary to do business restructuring. You can count on our services of management and consultancy, you will have different parameters that detect in time this type of business situations.

Main causes that motivate business restructuring

• Changes in demand. Changes in consumption habits or emergence of new products that weaken the competitiveness of the company. Technological innovations or the entry into the market of new competitors.
• Appearance of adverse circumstances due to the evolution of economic cycles.
• Failures of management and incorrect execution with serious failures for the good business development. Even fraud or unfair administration.

Planning Business Restructuring

If the causes are detected, a viable plan must be developed to move into action, taking into account short and medium-term operations, valuing the legal framework. In order to carry out the operations without interference, in the most orderly way possible and bearing in mind the legal protection that the existing bankruptcy legislation can provide.

• Studying strains will be the actual costs of structural changes. Adoption of measures to increase liquidity.
• Renew the management team to have sufficient capacity to undertake such an important contract renegotiation.
• Cut costs and abandon low-profit lines of business.

Types of business restructuring

In business restructuring there are two types of major and important changes as they are….

1. Operational changes. They are alterations of a company that affect its patrimonial and personal structure. Adapting the structure to fixed costs, outsourcing activities, relocating facilities, incorporating new technologies, adapting the workforce to new production needs… These restructurings can be accompanied by financial restructuring.

2. Financial changes. Includes operations such as transformation, merger, excision, global assignment of assets and liabilities. Search for alternative sources of funding, renegotiating conditions with banks, redefining financing structures…. Generally, financial business restructurings usually include operational changes. When there is a need for financial restructuring it is because something in the operational field has not worked well.

Our advice 

In Afine Consulting we are specialists in this type of business changes. Our experts have all the tools and experience to help you adapt your company to any new situation so that you can continue to operate normally as soon as possible. We will help you through the entire financial and operational restructuring process. Especially in the adaptation of costs and refinancing.