What is Business Restructuring?
Business restructuring involves reorganising operations, finances, and management. Key steps include:
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Renegotiating debts with creditors
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Reducing operational costs
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Selling non-essential assets
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Setting up a new company to continue viable operations
When Should Restructuring Be Considered?
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Rapidly increasing debt
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Poor cash flow
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Declining sales
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Legal notices from creditors
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Operational inefficiencies
Benefits of Restructuring
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Protects directors from personal liability
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Restores financial clarity
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Optimises resources for profitability
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Provides a structured path for business recovery
Conclusion
Restructuring is a proactive solution, not a sign of failure. Early action ensures stability and maximises the chance of business recovery.