If you are a business owner, the structure you have chosen for your company will have a dramatic impact on your success. Sometimes, you realize that restructuring your business is the best decision to keep making progress towards your business goals. Restructuring a business can help you make financial adjustments to assets and liabilities and improve your competitive advantage in the market. There are plenty of reasons why you might be interested in restructuring your business. The possible benefits of restructuring are numerous, which is why we’ve put together a list of them below. If you are interested in restructuring your business or have questions about the legal components of your company, reach out to Derryberry & Associates LLP.
1. Changing Your Business Direction
Sometimes, you realize that things aren’t working for your business and decide that it’s time for a change. Businesses are constantly experimenting with new products and services and implementing new strategies. Changing your business direction can naturally lead to restructuring. In order to move forward and explore new markets, it can make a lot of sense to restructure your organization. The best companies consistently try new things and are open to change.
Another common reason that a business owner decides to restructure their organization is when they are planning on downsizing. Businesses can adopt new strategies or product mixes that force them to downsize and cut staff. One way to reduce the workforce within a business is to restructure things. During the restructuring process, job descriptions and tasks are reviewed and reworked to make sure the remaining workforce is able to complete the necessary work without being overworked. Downsizing can lead to big things for your business, but you need to make sure the restructuring is handled the right way.
3. Merging with Another Company
If you are considering merging with another company, you can expect to restructure your organization after the deal is complete. Integrating your business with another business can be a big challenge that requires great legal minds to get things done the right way without disrupting business. Mergers and acquisitions are quite common in today’s business world, so it’s important to understand why restructuring is so important. Creating consistent procedures, eliminating duplicate work systems, and integrating existing processes into the new business model is all part of restructuring when you are merging with another company.
4. Performance Gaps
Every business owner has certain expectations and performance metrics that they use to measure the overall success of their company. If there are performance gaps within your organization, it’s common to explore restructuring the entire business. These performance gaps are usually the result of organizational inefficiencies that can be taken care of via restructuring. You should always speak with a great business attorney to see what restructuring your business can do to improve efficiency and allow you to reach your business goals. Reach out to Derryberry & Associates LLP for expert legal advice today.