Restructuring procedures
Restructuring is a process that aims to ensure that companies and groups are profitable and have a healthy cash flow. Very broadly, it can take two forms: financial restructuring (where a company looks to restructure the debts it owes to its creditors) and operational restructuring (where the company looks to change the way a company is structured, or how it works).
Unlike corporate insolvency procedures, a licence is not needed to provide restructuring advice, but advisors are likely to have many years’ experience and have a professional background in law, accountancy or insolvency.
Financial restructuring
Financial restructuring looks at reorganising the company’s financial structure, with the aim of improving the value of the company and retaining the confidence of its shareholders, investors and key stakeholders.
Operational restructuring
Operational restructuring is a process which aims to make a company and its business model profitable by identifying which areas of the company are underperforming and how they can improve. It does not focus on a company’s financial performance (apart from whether areas of the business are profitable or loss making), but instead explores how the business can return to profitability by improving its product and service offering and how it runs on a day to day basis.