Corporate Restructuring is the term used by corporate management to describe the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of repaying its debts, increasing profits, and achieving effective results, enabling overcoming financial deficiency.
Other reasons for restructuring include a change of ownership, demerger, or a response to a crisis or major change in the company such as bankruptcy, or repositioning.
Successful corporate restructuring of a company should reorganize its original company model as a result of a general economic recession or mismanagement.
Added value to business entities from Corporate Restructuring Services
- Increase profitability and market share, and provide competitive advantage;
- Maximize shareholders’ value, improve operation efficiency and enhance growth potential; and
- Enable business entities to tap new opportunities and expand their operations.
Services provided by Baker Tilly
Corporate restructuring is often divided into two parts:
- Financial Restructuring
- Operational Restructuring
Financial Restructuring relates to improvements in the capital structure of the entity and involves restructuring the assets and liabilities of corporations, including their debt-to-equity structure, in line with their cash flow, support growth, and maximizes the value to shareholders, creditors and other stakeholders. If the firm is under bankruptcy, financial restructuring is laid out in the reorganization plan.
Operational Restructuring is the process of increasing the economic viability of the underlying business model. Examples include mergers, the sale of divisions or abandonment of product lines, or cost-cutting measures such as closing down unprofitable facilities.
In most turnarounds and bankruptcy situations, both financial and operational restructuring must occur simultaneously to save the business.
Most importantly, Baker Tilly’s Corporate Restructuring team is composed of dedicated and highly experienced professionals specializing in Corporate Finance Consulting. Baker Tilly provides the best value for Financial Advisory Services, ensuring ethical business practices, which enhances the value of your business.
Other related services
- Feasibility Study
- Strategy & Business Plan
- Mergers & Acquisitions
- Business Valuation
- Impairment Test
- Purchase Price Allocation
- Private Placement Memorandum
- Initial Public Offering
- PPP Transaction Advisory