What is corporate restructuring?

Restructuring a company involves changing one or more aspects of a company. 

Corporate restructuring can be an entirely flexible concept. The restructuring that a company undergoes, depends on the needs of that company and the wider performance of the market. 

Any restructuring by a company is often perceived to imply that a company is going through a challenging financial situation and sometimes this is the case. However, consideration to restructuring a company should also be considered when a company is doing well and looking to grow.

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What is the purpose of corporate restructuring?

The purpose of corporate restructuring is usually to improve profitability and financial performance of a company, often by reducing its costs. There are many ways that a company can alter its legal structure and in doing so, this can help to reduce costs and increase profitability. 

How can a company restructure increase profits?

If the aim of the corporate restructure is to increase profits, usually either costs need to be reduced or alternatively, the company needs to improve its efficiency. 

As part of the corporate restructure, we would work with you and your accountant to establish exactly what you are trying to achieve and how the legal structure of your company can assist in increasing its profitability. 

The types of actions we may suggest could include:

  • Outsourcing
  • Specialisation
  • Joint venture agreements
  • Merging with or acquiring another business
  • Group company structures

What are the main types of corporate restructuring?

Broadly corporate restructuring can be split into three main categories:

  • Organisational restructuring
  • Asset restructuring
  • Financial restructuring

How Goughs can help with restructuring?

Corporate restructuring can be an essential tool to increase a company’s profit and decrease its costs. At Goughs we have the necessary legal expertise to advise you on how corporate restructuring can improve the way in which your company operates. 

Please get in touch with our Corporate Department to learn more about how we can assist you. 

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Author Bio

Jonathan Carter-Lewis

I was first attracted to a career in law when I did an internship for a large conglomerate working in their corporate & commercial team, in Hong Kong. That gave me my first taste of what a lawyer does. 

I enjoy problem solving and being thrown into something that isn’t straight-forward. Finding ways to make my clients’ lives easier, putting smiles on their faces, and building strong working relationships are just a few of the highlights of the legal profession.

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