Company Restructures Solicitors
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There are many reasons why a company might choose to restructure and often it is a result of facing significant financial pressure.
Factors such as financial debt, poor performance or hefty competition can all lead to a business’ decision to restructure.
Companies might also choose to restructure in order to prepare for a change in business goals, sale or merger.
What is company restructuring?
Restructuring is a form of corporate action that changes the structure and operations of the company in order to mitigate problems or to improve the overall performance of the business.
Restructuring can be a huge change for a company and can have a number of consequences, an unfortunate one often being to downsize and layoff staff.
A restructure can take place either to cushion a painful blow to the business or to capitalise on the most profitable part of the business.
Spencer Churchill Solicitors offer specialist advice on company restructuring for those who are facing financial hardship or want to take their business in a new direction.
What types of company restructures are there?
There are a number of different types of company restructures:
Mergers and acquisitions
A merger happens when two companies join forces to create business whereas an acquisition involves one company taking over another company and buying it out.
Financial restructuring occurs when this is change to the financial structure of the business. This can be a result of structuring debt or equity.
When changes happen that concern legal matters such as a change in ownership or paperwork, this involves the legal restructuring of a business.
For advice on legal restructuring, contact us.
If a business changes its services and wants to rebrand itself, this would be considered repositioning.
Repositioning a business doesn’t completely change its identity.
For legal advice on business repositioning, contact us.
Another form of restructuring involves cutting costs around the business whether that be in admin or operations.
For legal advice on cost-reduction restructuring, contact us.
If there is a part of the business that is underperforming, a company can sell this as a form of divestment restructuring.
For legal advice on divestment restructuring, contact us.
What company restructures advice do you offer?
Spencer Churchill Solicitors offer specialist legal advice on a number of areas in the process of corporate restructuring:
The transfer of assets
Mergers and demergers
Why Choose Spencer Churchill for advice on company restructuring?
We understand that restructuring is not all about insolvency and we will do what we can to make sure that this is a final resort.
Spencer Churchill Solicitors have the skill and experience to handle all manner of company restructures and we can tailor a service that suits you and your business needs.
In the unfortunate event that a business fails, we provide expert assistance to make sure that we salvage the best outcome for company stakeholders and everyone involved.
Transparent, open and tailored advice is at the heart of what we do and Spencer Churchill Solicitors will do their duty to support any concerns around restructures, exit strategies, company formations and insolvencies for small to large-scale businesses.
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Company Restructures Solicitors FAQs
Why do companies restructure?
Companies will restructure for a number of reasons, often as a result of financial hardship or to address profitability.
Restructuring is not always done to save a company, however, as restructuring can also be implemented to facilitate growth of the business.
What happens when a company restructures?
When a company restructures, the operations and ownership may change. This means that there may be alterations made to the managerial structure and day to day running of the business, as well as potential redundancies of staff.
This is why legal advisers are sought after to ensure the development of a well-thought out and effective restructuring strategy.
When can I make redundancies?
Business owners must make a difficult decision that requires careful consideration; especially when this involves the job security of employees.
You may have no choice but to let staff go if:
- the business goes under
- a workplace is closing or relocating
- the job role is no longer necessary to the business
What does a turnaround mean?
A turnaround occurs when a business that is struggling to survive manages to find itself back on the road to recovery and success.
Turnarounds work similarly to restructuring, as there will be a plan in place to get the business back on track and profitable again. The process is also often overseen by external parties.
Do I need a restructuring business plan?
Restructuring a company requires extensive planning to make sure that the proposed structure has the best chance of meeting your business goals.
A plan will take into consideration standards for performance and financial objectives, as well anticipating opportunities.
Restructuring can be complicated and devastating, therefore having a carefully thought out plan in place can mitigate any damage and help put your business back on track.