Financial Restructuring is the term used by corporate management to describe the act of reorganizing the operational and/or financial structure of a company for the purpose of repaying its debts, increasing profits, and achieving effective results enabling the company to overcome financial difficulties.
Other reasons for restructuring include a change of ownership or demerger or a response to a crisis or major change in the company such as bankruptcy or repositioning.
Successful restructuring of a company should lead to reorganizing the company’s original model that has been affected by economic slow-down or mismanagement.
Added value to business entities from Financial Restructuring Services
- Increase profitability and market share, and provide competitive advantage.
- Maximize shareholders’ value, improve operation efficiency and enhance growth potential.
- Enable business entities to tap new opportunities and expand their operations.
Services provided by Baker Tilly
Restructuring is often divided into two sections:
- 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 cash flow, growth support, 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 financial difficulty situations, both financial and operational restructuring must occur simultaneously to save the business.
Most importantly, Baker Tilly’s Restructuring team is composed of dedicated and highly experienced professionals specializing in Investment Advisory Services. Baker Tilly provides the best value for Investment Advisory Services, ensuring ethical business practices, which enhances the value of your business.
Other related services
- Strategy and Business Plan
- Feasibility Study
- Business Valuation
- Financial Due Diligence
- Mergers and Acquisitions
- Preparing Private Placement Memorandum
- Public Offering Prospectus
- Listing Advisory Services
- PPP Transaction Advisory
- Market Maker Advisory
- Collective Investment Schemes Advisory
- Advisory Services for practicing Securities