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
Causes and Reasons for Corporate Restructuring
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.