If your business is in trouble financially then you should consider restructuring. A professional lawyer from commercial lawyers Perth will be able to help you decide the best way to do this, but restructuring your business will basically let you continue to operate when your assets are under threat.
There are numerous reasons why you might decide to restructure your business. There are also a range of different outcomes that you might be trying to achieve. In this article we’re going to first define what we mean by business restructuring, then cover some of the most popular reasons for restructuring.
As always, this isn’t legal advice, but information to help you decide whether restructuring is a viable course of action for you to take.
What is business restructuring?
Basically, business restructuring is pretty much what you’d expect. It usually involves changing the internal structure of your business to better reflect your aims and business needs. It includes, but isn’t limited to, things like:
- Debt restructuring to free up more capital and reduce your overheads.
- Corporate restructuring to change the way your business is run.
- Financial restructuring to make your business more profitable.
Generally, business restructures are designed to balance your business, making it easier to run and more profitable in the long-term.
Should I think about a debt restructure?
One of the most common reasons for restructuring a business is when the business in question is struggling on a financial front. Debt restructuring can help you pay off your debts and get ahead without losing any more money.
Debt restructuring works differently for every company, but it’s definitely an option you should consider. An experienced financial or commercial lawyer, such as Commercial Lawyers Perth, will be able to help you decide whether debt restructuring is a good idea for your business.
In general, debt restructuring if a lot better option than insolvency or litigation – it lets you continue trading and gives you the chance to rebuild your business and recover your losses.
How can I make sure my restructure is successful?
Now, it’s important to realise that business restructuring isn’t always easy. It can take a lot of time and effort, so it’s important to do everything that you can to make sure that it works.
Don’t lose sight of what your company means – Ultimately, you need to make sure that you retain your company vision and goals, otherwise you might as well just start a new business.
Make sure that things are clear – Restructuring your business should be focused on bringing clarity and simplicity to you and your employees. Whether this is with respect to expected roles within the business, financial management, or something else will depend on your exact circumstances, but it needs to be kept in mind.
Remain flexible – Remember, restructuring your business doesn’t mean that you have to lose all of your flexibility. Make sure that you and your business remain versatile and adaptable so that you can change with the times.
Business restructuring is a great way to turn a struggling business around. If you’re having trouble paying off your debts or running your business efficiently, you should consider speaking you a commercial lawyer about your restructuring options.