登录查看更多内容

What are the risks and opportunities of restructuring plans?

由人工智能和领英社区提供技术支持

Restructuring is a process of changing the organizational structure, strategy, or operations of a business to improve its performance, efficiency, or competitiveness. It can involve various actions, such as downsizing, mergers and acquisitions, divestitures, outsourcing, or debt restructuring. Restructuring can be driven by internal or external factors, such as financial distress, market changes, innovation, or regulation. However, restructuring is not without risks and opportunities. In this article, we will explore some of the potential benefits and challenges of restructuring plans for different stakeholders.

此文章中的业界达人

由社区从 4 条内容中精选。了解更多

Kibin Kepawitono

Fellow CPA Australia / Fellow Chartered Accountant of Singapore / Chartered Accountant of Malaysia
ARVINDER SINGH

Investment Banking, M&A, Private Equity, Stressed Assets Funding, Insolvency Advisory (Managing Partner, Finsmart…

1 Benefits of restructuring

Restructuring can offer several advantages for a business and its owners, such as enhancing profitability and cash flow, improving efficiency and productivity, gaining competitive edge or market share, resolving financial issues or avoiding bankruptcy, and aligning with strategic goals or vision. This can be achieved by reducing costs, increasing revenues, optimizing assets, streamlining processes, eliminating redundancies, adopting new technologies, expanding into new markets, diversifying products or services, acquiring new capabilities or resources, renegotiating debt terms, raising capital, selling non-core assets, adapting to changing customer needs, industry trends, or regulatory requirements.

添加您的观点

Amer Morgan (CIA, CRMA, CFE)

Respected Audit Professional | Distinguished Corporate Instructor| Championing Risk and ESG Audit | Proficient in BCMS, ISO and KPI | Driving Success through Consultancy | Innovator in Training Program Development
举报内容
Restructuring plans carry both risks and opportunities. Risks include decreased employee morale, operational disruptions, financial costs, reputation damage, legal issues, and loss of talent. On the flip side, opportunities include cost savings, a sharpened strategic focus, increased innovation, enhanced productivity, better market adaptability, and improved stakeholder value. Both should be carefully weighed to craft a restructuring plan that aligns with long-term organizational goals.

已翻译

赞

2 Challenges of restructuring

Restructuring can also pose several challenges for a business and its owners. These may include facing resistance from those affected by the changes, losing key talent or customers due to uncertainty, incurring costs associated with severance payments or contractual obligations, experiencing operational disruptions due to the complexity of the restructuring process, and managing risks related to the outcomes of the plan.

添加您的观点

Richard Veltre

Advisor, Connector, Expander, and Podcaster
举报内容
Successfully restructuring a business means that you highlighted your issues for outside parties to see and analyze, in the hopes that they will come to the table to help you work out the problems you are trying to solve. Everything about that sentence sounds like a challenge. Just recently I worked on a case where a business was recognizing just how bad their cash flows had become, recognized that there probably was no internal solution and contemplated a restructuring that included a degree of cash infusion and asset sales. The plan was formed but the owner reneged and that spooked the investors. In the end, company was forced into bankruptcy, customers canceled contracts, creditors lawyered-up, and the restructuring never occurred.

已翻译

赞

3 Implications for employees

Employees are often the most impacted by restructuring, which can bring about changes in their roles, responsibilities, compensation, or working conditions. Depending on the type and extent of restructuring, employees may have the chance to grow and develop by learning new skills or taking on new challenges. They may also be offered severance packages, outplacement services, or referrals to other employers. However, restructuring can also bring about stress and anxiety due to uncertainty, instability, increased workloads or pressure. Conflict and dissatisfaction may arise due to communication gaps, cultural clashes, or unfair treatment or decisions.

添加您的观点

4 Implications for customers

Customers are also impacted by restructuring, as they may notice changes in the quality, availability, or price of the products or services they purchase. Depending on the nature and scope of restructuring, customers may experience opportunities for satisfaction or loyalty through improved features, performance, or service levels. They may also gain access to new products, services, or markets that meet their needs or preferences. On the other hand, customers may face risks of frustration or confusion due to disruptions, delays, or errors in delivery, support, or functionality. Furthermore, they may encounter reduced quality, availability, or affordability of the products or services they use which could lead to dissatisfaction and defection.

添加您的观点

5 Implications for investors

Investors are heavily impacted by restructuring, as it can have a direct effect on the value, performance, or prospects of the business they invest in. Depending on the rationale and results of restructuring, investors may experience opportunities for returns or growth by seeing increased profitability, cash flow, or market share of the business. They may also gain exposure to new segments, sectors, or regions through dividends, buybacks, or spin-offs. However, restructuring can also lead to risks of losses or volatility by witnessing decreased profitability, cash flow, or market share of the business. Investors may also face risks of dilution or impairment by reduced equity value, earnings per share, or credit rating of the business they invest in.

添加您的观点

ARVINDER SINGH

Investment Banking, M&A, Private Equity, Stressed Assets Funding, Insolvency Advisory (Managing Partner, Finsmart Advisory)
举报内容
Investors and lenders have more to lose than others but eventually it is win win for all stake holders.. It takes experienced and enlightened minds to see restructuring through!

已翻译

赞

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

Kibin Kepawitono

Fellow CPA Australia / Fellow Chartered Accountant of Singapore / Chartered Accountant of Malaysia
举报内容
They are also subject to complex tax implications arising from company or business restructuring, and there is a need to engage professional tax consultants to look into various tax regulations pertaining to the restructuring processes, especially when the restructuring scope touches on different tax jurisdictions.

已翻译

赞

Restructuring

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

What are the risks and opportunities of restructuring plans?

1

2

3

4

5

6

1 Benefits of restructuring

2 Challenges of restructuring

3 Implications for employees

4 Implications for customers

5 Implications for investors

6 Here’s what else to consider

Restructuring

给文章评分

感谢您的反馈

更多Restructuring相关文章

更多相关阅读内容