Corporate Restructuring

Feel free to 'Contact BMM' to discuss how we could help you with your Corporate Restructuring.

In the meantime here are some things about Corporate Restructuring that you might find useful:

Restructuring is the corporate management term for the act of reorganising the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organised for its present needs. Alternate reasons for restructuring include a change of ownership or ownership structure, demerger, or a response to a crisis or major change in the business such as bankruptcy, repositioning, or buyout. Restructuring may also be described as corporate restructuring, debt restructuring and financial restructuring.

Executives involved in restructuring often hire financial and legal advisors to assist in the transaction details and negotiation. It may also be done by a new CEO hired specifically to make the difficult and controversial decisions required to save or reposition the company. It generally involves financing debt, selling portions of the company to investors, and reorganizing or reducing operations.

The basic nature of restructuring is a zero sum game. Strategic restructuring reduces financial losses, simultaneously reducing tensions between debt and equity holders to facilitate a prompt resolution of a distressed situation.

Steps:

1. Ensure the company has enough liquidity to operate during implementation of a complete restructuring.
2. Produce accurate working capital forecasts.
3. Provide open and clear lines of communication with creditors who mostly control the company's ability to raise financing.
4. Update detailed business plan and considerations