Corporate restructuring is the process in which an organization makes changes to one or more aspects of the business, usually to improve financial standing. At its core corporate restructuring is a significant modification of the structure, financial practices, or operations of a company. During times when corporate restructuring is needed business owners, CEOs, and entrepreneurs will seek the guidance of a financial business strategy consultant to analyse and determine where and how to make the necessary modifications to encourage the desired outcome

3 Leaf Financial specializes in corporate restructuring, focusing on two primary areas to enhance an organizations performance and profits

Fractional CFO Services

Financial Restructuring

Your 3 Leaf Financial expert will assist and advise in improving financial practices, debt financing, sell of shares, and operations reduction.

Organizational Restructuring

A financial business strategy consultant will help to identify key areas, departments, or assets that would be better served divested to a third party. In addition, a restructuring of management may be recommended to better serve the company during difficult transitions and to continue to promote the new practices.

Causes and Reasons for Corporate Restructuring

Rebranding

Times may call for an improved business structure in order to maintain the relationships with your current customers and to continuously attract new clients. Falling behind the times either with your product or company values can be the demise of your business.

Focus on Core Strategy

Expansion into new industries or product production may not always go according to plan. Refocusing on the company’s core strategy, returning to focus efforts on the selling the assets that fit most with the company’s vision is often a primary solution in corporate restructuring.

Decreased Profits

Select divisions with a company may not generate enough profits to cover the company’s expenses in investing in that division. The lack or decrease in profits may stem from poor management decisions, lack of training or bad hires, a shift in the market, rising costs to produce a product or service, or changes in customer desire.

Reversed Synergy

During times of growth and prosperity, divisions of a business follow the M&A principles of synergy—that a division as a whole is more profitable than the cost of the individuals. In times of financial distress for a company, reversed synergy often occurs, where the cost of the individuals is more than the worth of the division. If new corporate reconstructing practices are unable to correct this course, it may be in the company’s best interest to outsource or eliminate this division.