Business Restructuring

Business restructuring can do wonders for any business which needs help to facilitate growth. Whether you need to turn things around, or your business is looking to grow assets, a proven business restructuring plan helps.

The advisors at Hillcrest Finance have experience with businesses who need to restructure for all manner of reasons. It needs to be a positive experience and one which leaves a business in a state that promotes long-term growth.

If you would like to speak with someone about business restructuring services, talk to Hillcrest today.

Is business restructuring a good idea?

Restructuring can be a wholly positive path when done right. It is best to think of the process like a check-up on the company to see if there are underlying or hidden issues which need addressing. Business restructuring may help when:

  • You need a business to get back to normal
  • You would like risk identification carried out
  • You want to keep costs in check
  • You want to get a business in good standing before a sale
  • You are looking for improved financing models

Elements like these typically benefit from having fresh eyes look over everything, and our advisors take a proactive approach to ensure that business restricting is a good idea for your business, no matter what form it takes.

Understanding risks from restructuring

Business restructuring isn’t just about improving finances. A thorough approach helps look at how a business can implement changes from the ground up. When looking at companies within certain niches, our advisory team will want to consider all options and not just the first approach that will work.

Restructuring for recovery

Many businesses will need to restructure when under pressure, mainly due to factors like:

  • Debts
  • Running costs
  • Loss of clients
  • Loss of revenue

Most of these would be signifiers that a business is looking to avoid administration. You can find more information on how we help companies with administration here.

What recommendations would Hillcrest provide during restructuring?

Once we get to know what the financial health of the business is like, and what underlying risks there are, it is typical to plan out recommendations which help form a restructure plan. These can include:

  • Financing options
  • Debt restructuring
  • Lowering operating costs
  • Opting for Time To Pay

Will restructuring result in administration?

Restructuring may be recommended if deemed necessary. For example, we may recommend that administrative steps are taken to help protect the business from creditors who could instigate legal action otherwise. Please read our administration page for advice on this area.

Advantages of restructuring

Restructuring can provide advantages in the long-term by:

  • Bringing costs down
  • Improving communication
  • Improving efficiencies
  • Simplifying management
  • Outsourcing operations where appropriate

Disadvantages of restructuring

A business would want to be considerate of restructuring as it can lead to:

  • Reducing staff numbers
  • A period of slow adjustment
  • Less productivity
  • Replacing old systems for new technology and resources

With these elements, they would be factored into any long-term restructuring plan.

Helping shareholders understand

Any business restructuring plan is going to be met with some surprise from investors, which is why having a fully-formed plan that can easily communicate the steps a company takes can help put minds at ease.

When Hillcrest advisors look at restructuring for clients, it is common to lay out where we see the future of a business after changes have been made as a means to show what future profitability may look like.

Are there alternatives to restructuring?

Restructuring is usually a sign a business wants recovery or progress. If this is the case for you, we recommend looking at alternatives like our business advisory or company voluntary arrangements.

If a business is in trouble and feels that debts may be too much, we recommend reading about corporate insolvency.

Talking about business restructuring

Hillcrest Finance is here to answer any questions you have about restructuring services we provide clients.

Call us directly on 0141 478 0862. Lines are open every weekday from 8 am.

Get in touch with us about restructuring today