special report

Restructuring ... the mere mention of this procedure raises concern and fear in any company, it is a difficult process and requires a great deal of careful planning, renewing business and making decisions that affect the company and its employees is not an easy matter.

Understand restructuring

- Restructuring is a measure by a company to significantly change its financial or operating structure, and it is usually resorted to when it is under the pressure of financial coercion.

- companies may also restructure when preparing for sale, acquisition, merger, change in general objectives, or transfer of ownership.

- The company may choose to restructure after it fails to successfully launch a new product or service, leaving it in a position where it cannot generate sufficient revenue to cover salaries and debt.

- When the difficult restructuring process is over, the company must ideally be allowed to carry out more smooth and economically sound operations.

How does restructuring work

When a company is restructured internally, operations, divisions or ownership may change, enabling the company to become more integrated and profitable, and financial and legal advisors are often appointed to negotiate restructuring plans.

The company may decide to sell shares to investors, or appoint a new CEO (CEO) to help implement the changes, and may resort to modifying procedures, computer systems, networks, sites, and legal issues, and with overlapping tasks jobs may be abolished and layoffs.

Restructuring appears to be a turbulent and painful process at first, but after staff adjust to the new environment, the company is usually better equipped to achieve its goals by increasing efficiency in production.

Important tips

If you plan to restructure your company or make organizational changes in the near future, you should consider several things before starting this:

- Communication is the most important element in restructuring and organizational change, because the nature of the process imposes a state of anxiety and fear in the work team, and therefore must be contacted effectively to dispel his concerns about his fate and the fate of the company.

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