21 Feb 2020 Ankit Chadha

Corporate Restructuring: Here's Everything You Need to Know

Corporate Restructuring | TRC Consulting

Every single business during its lifetime experiences the need to change and restructure the current systems, processes, and even teams. It is inescapable. Organizations that easily recognize the need to proceed down their development curve until the time is right have accomplished sustainable outcomes. Many that don't, face hardship and usually fail to achieve their goals. Good management realizes the need for reform and takes constructive steps to bring about the requisite changes.

In this article, you will find everything you need to know about corporate restructuring, keep reading to learn more.

What is Corporate Restructuring?

Corporate restructuring is characterized as the process involved in changing/expanding a company's scope of business – including drastic business improvements in the form of changes by cutting out or merging different departments and divisions.

Corporate restructuring recommends reorganizing the organization or business for better competence and productivity. In other words, it is a systematic mechanism in which an organization can integrate its operating activities and strengthen its role as a profitable and productive enterprise to accomplish organizational goals-synergies.

Primarily, there are mainly two directions of business growth – organic and inorganic growth:

Organic Growth: An organization is believed to grow organically in case the growth is enabled through internal sources, without any shift or change in the corporate structure, as an entity. Typically, organic growth gets accomplished by capital restructuring or by restricting certain business activities.

Inorganic Growth: An organization's inorganic rate of growth is a collective upsurge in output and business scope by enabling innovative strategies – mergers, acquisitions, and company take-overs, including any other form of corporate restructuring that changes the corporate's entity.

What Does Company Restructuring Involve?

Corporate restructuring often entails layoffs or bankruptcy, but restructuring is typically undertaken to reduce the effect on the employees, if probable. It also includes the sale or merger of the company with a diverse enterprise – businesses conduct corporate restructuring as the company's formulated strategy to ensure long-term sustainability.

How TRC Helps with Corporate Restructuring?

At TRC Corporate Consulting, our corporate restructuring services is concerned with positioning corporate sector operations to help you achieve pre-arranged objectives and targets.

Our objectives encompass the following, but are not limited to it:

  • Arrange redirection of the company's activities
  • Placing of extra cash flow from one business to enable profitable financial growth in another
  • Risk reduction to curtail misuse of inter-dependence with current and future businesses
  • Develop the company's core competencies

Our primary scope of corporate restructuring entails:

  • Improving economy (cost reductions)
  • Enhancing efficiency (profitability rate)
  • Erosion of Market Share
  • Curtail Dependent Debts

Note: Corporate restructuring targets different issues, at different times, for different businesses. However, its one essential purpose is to eliminate any drawbacks and synergize the advantages.

Our expertise in corporate restricting helps fulfill the following needs of a company:

  • Focusing on intrinsic assets, organizational alignment & other efficient division of strategic and technology resources
  • Expansion and diversion of consolidation and economies of scale to effectively manage extended domestic and global markets
  • Revival and regeneration of an outdated unit by balancing the impacted product costs with a profitable company's earnings
  • Constant acquisition of raw material's supply and access to basic research and technical advancement
  • Restructuring of capital by enabling a compelling mix of loan and equity funds to reduce funding costs and increase the return on capital employed

We, at TRC Corporate Consulting, help you with the below-mentioned aspects while planning and executing corporate restricting strategies for your company:

  • Valuations & Funding
  • Legal and Procedural Compliance Issues
  • Taxation Advisory
  • Accounting Advisory
  • Competitive Analysis
  • Human and Social Synergies

Some of Our Corporate Restructuring Strategies:

At TRC Corporate Consulting, our experts provide assistance and support for several different types of corporate restricting strategies, including but not limited to:

  • Mergers
  • Demergers
  • Reverse Mergers
  • Disinvestments
  • Takeovers
  • Joint venture
  • Strategic alliances
  • Franchising
  • Slump Sale

Corporate Restructuring, if implemented correctly, with appropriate guidance and continual support, can bring forth the following benefits:

  • Strategic Advantage
  • Managerial Efficacy
  • Utilization of surplus capacities
  • Improve shareholder's confidence in the company
  • Economies of Scope, Scale and Vertical Integration
  • Effective Utilization of Extra Funds
  • Tax Protections
  • Reduced cost of operations
  • Enhance competitive excellence
  • Reductions of the financial interest burden

We offer market-leading advisory and support services fixated on amplifying recoveries, enhancing financial performance, and undertaking structural and financing problems. With our extensive expertise gained from working with clients across industries, you can take your business to another level of performance. For any query or further understanding of our services, contact our team!

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