Corporate Restructuring

Corporate Restructuring is the process of drawing one or more aspects of a company. The process of reorganization of a company can be implemented because of a series of different factors such as the company's repositioning to be more competitive, to survive an adverse economic climate or put the corporation to move in a whole new direction.


Below are some examples of how the Corporate Restructuring services can help and what that might mean for companies:


Restructuring due to the growth

Restructuring of a corporate entity is often a necessity when the company has grown to the point that the original structure can not manage more efficiently the output and the general interests of society. For example, a corporate restructuring to segregate departments in subsidiaries as a means of creating a more efficient management model as well as take advantage of tax incentives that allow the corporation to save a revenue reserve for investment in the production process. In this scenario, restructuring is seen as a positive sign of the company's growth and is often welcome by those wishing to see the corporation gain traction in the market.

Financial restructuring in difficult times

The need for financial restructuring can occur in response to a drop in sales due to a sluggish economy or temporary concerns about the economy in general. When this happens, the company will reorganize finances as a means of keeping the operating company at this difficult time. Costs can be cut, the unification of divisions or departments, the reallocation of responsibilities and staff cuts or reducing production at several facilities owned by the company. With this type of restructuring, the focus is on survival in a tough market.


Corporate restructuring due to processes of acquisition, merger, spin-off or incorporation

Corporate restructuring can occur as a result of the acquisition of the company by new owners. The acquisition may be in the form of a leveraged buyout, a hostile takeover or a merger of some sort that keeps intact the company as a subsidiary of the parent company. When the restructuring is due to a hostile takeover, corporate raiders often implement a dismantling of the company, the sale of properties and other assets in order to profit from buying. What remains after this restructuring can be a small entity that can continue to function, though not in the possible level before starting this process.


In general, the Corporate Restructuring service from Lazaro Consulting aims to increase efficiency and profitability through the recovery, adaptation, growth and expansion of the company.

Please contact our company and get more information.