How corporate restructuring can benefit healthy businesses

David Filice • December 05, 2018

Most think of corporate restructuring as a way to save a failing business. This is for a good reason: a major function of corporate restructuring is to ‘course-correct’ a struggling business. However, it’s important to note that saving a business in distress isn’t the only function of restructuring.

A Restructuring Effort Can Identify and Eliminate Under-Performance

The primary goal of a corporate restructuring is to identify inefficiencies in your business structure. While inefficiency is often a major pain point for struggling businesses, it’s quite often also present in successful corporations.

A restructuring effort can help to eliminate these inefficiencies, rebuilding them from the ground up using a more stable and effective framework, thereby increasing overall performance and eliminating inefficiencies before they can develop into major problems.

Adapt to Changing Trends & Technologies by Rebuilding Around Them

Flexibility is an important trait for a business, particularly when considering the rate at which technology is evolving. Hardware has developed to the point where a low-end smartphone in 2018 has more processing power than 1998’s most powerful supercomputers in existence. Software has developed massive innovations such as cloud processing and blockchain that have completely restructured processes and data handling. AI and automation have had a massive impact on what we can and cannot do, and in many cases have severely changed the amount of time and effort required to do it. And that’s not even mentioning the changes in management practices, and new economic studies.

While some changes can be applied with simple upgrades, major changes often require reassessments of corporate structure, at the very least, if not complete restructuring from the ground-up to fully make use of the new trend or technology.

Capital Restructuring to Optimize Cash Flow and Minimize Debt Load

Capital restructuring is another aspect of corporate restructuring that can have a massive, direct impact on your business.

Capital restructuring allows you to arrange your debt and capital requirements to ensure that you’re managing your capital and debt load at peak efficiency. This enables you to access the funding that your business requires to support growth and maximize profitability, while keeping your debt load under control.

Fuller Landau is Here to Meet Your Toronto Corporate Restructuring Needs

Whether you want to upgrade your business’ technological infrastructure, iron out existing inefficiencies, optimize finances, or need to be saved from inefficiency-related trouble, our Toronto corporate restructuring advisors can help you determine the most efficient course, and provide you with the guidance you need to help your business thrive for years to come.

For more information, contact us today to schedule a complimentary consultation with one of our Toronto corporate restructuring experts.


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