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:
- 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.