How Long Does It Take For A Company To Restructure

Restructuring a company can involve changing the financial, operational, legal, or other internal structures with the purpose of making it a more efficient as well as a more profitable organisation. Whether you are restructuring a struggling business, restructuring to support expansion into a new revenue stream or restructuring to create an opportunity to pass the business on to a family member or sell it, the sooner you start the process the better. It is important to be realistic with a time frame as the depth of any restructuring will determine exactly how long the entire process will take. In order to be effective, the restructuring process would benefit from experienced professionals well versed in helping companies successfully restructure themselves. There will often be various stakeholders to consider such as investors, financiers, employees and customers and keeping all parties informed will be vital to the success of the restructure. In this article, how long does it take for a company to restructure, we take a look at the processes involved.

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For a free initial discussion on how we can help you with the legal aspects of restructuring your company, get in touch with us today. We will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure your business restructure runs smoothly and will also help avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or complete our online enquiry form and a member of the team will get back to you.

Why restructure your business?

The idea behind restructuring a business is often associated with making it more streamlined and cutting costs thus increasing efficiency and profitability. The actual process can involve altering the financial, operational, legal or structural set up of the business. Although restructuring often happens in times of crises, it can also happen when new opportunities have been identified. Keeping abreast of the wider political, sociological, technical and economic environment is key to the survival and continued success of any business.

What Are The Advantages of restructuring?

Restructuring a company is a great opportunity to evaluate exactly where the business is currently up to and how well it will fare in dealing with an ever-changing world. There are many benefits to restructuring a business and those that cannot adapt to changes in their circumstances often struggle to survive.

Start from where you hope to end up

Before you can decide how to progress your restructure and what processes might be required from a legal point of view, it is a useful exercise to work backwards from how you would like the restructure to look once it is complete.  This could take the form of analysing the current business set up, evaluating job roles, skills assessments and producing job descriptions and a new organisational structure.

Consider what you want the organisation to look like before you work out how to change it. It is important to avoid designing jobs around current staff and instead look to design jobs purely based on what the organisation actually needs.

The process of restructuring

Plan your new structure. Any restructuring of a business, whether it’s a plan for expansion, taking things in a new direction, or consolidation during a tough period, is more likely to succeed with careful planning.

In the same way as a new business is set up, carry out market research and identify the opportunities, and ensure that you’re entering a profitable industry.

It is always a good idea to draw up a business plan. It can act as a guide moving forward but will also be a useful document if you are looking to raise finance through banks or other investors.

Get buy-in from your key staff. The whole process will invariably run a lot smoother if you keep your staff informed and more importantly, involved. Employees will naturally feel their jobs might be under threat and there may well be the need for redundancies. Some companies actively encourage staff to give their opinions at the beginning of a restructuring. However, you choose to involve your staff, ensure it is done carefully and considerately. Do remember that usually, you cannot radically change the job descriptions of your existing staff especially without telling them first.

The process of change can be complex with numerous parties involved. Consequently, it is advisable to allow plenty of time for the process to be completed. In many ways, the company will be constantly evolving in order to prosper and accepting this in terms of keeping to a timetable is essential. Depending on the size of the company and the true extent of any restructure, the whole process can take from several months to a number of years.

How we can help

We have a proven track-record of helping clients restructure their businesses no matter the size. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.

How to Contact our Corporate Solicitors

It is important for you to be well informed about the issues and obstacles you are facing. However, expert legal support is crucial in terms of saving you money and ensuring you achieve a positive outcome.

To speak to our Corporate solicitors today, simply call us on0345 901 0445, or allow a member of the team to get back to you by filling in our online enquiry form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

Authored by Ben Posted in Corporate, News Tagged as