We have collated the most frequently asked questions in one place to help you find quick answers to important matters.
Business restructuring typically involves reorganising the legal, ownership, operational, and/or other structures of the company. The purpose of such could be to increase profitability, but more often than not it is to avoid insolvency and debt issues.
To increase the prospects of a successful turnaround, companies often employ an external third party such as Australian Debt Solvers to provide expert advice and recommendations.
As part of our restructure and turnaround process, we will:
Read more about you business restructure and turnaround options.
There are several different reasons why a restructure should be considered. This may be the case early in the business cycle during a period of rapid growth or at a more mature stage where there is a potential change in ownership. Here are some of the most common reasons for business restructuring:
For more information, read our in-depth article on ‘when should a business restructure be considered?’
The key to a successful restructure is developing an effective strategy. The easiest way to do this is by seeking professional restructure & turnaround advice from experts such as Australian Debt Solvers. Our team will follow a proven process that will provide the best prospects of returning to financial prosperity. The process includes evaluation, analysis, recommendations, implementation, and review.
Read more on how to manage your business operations restructure.
When a company is failing to meet expectations, there are several ways to address the issue. Increasing profits is not as simple as generating more revenue through sales. It is necessary to take a holistic approach and analyse every aspect of the business, both internal and external. Depending on the type of business, the following areas may be considered:
At Australian Debt Solvers, our team consists of specialists across a range of fields including accounting, leadership, consolidation, operations, and technology. If you are looking to increase your profits, contact us for expert advice that will make a difference.
In business terms, reorganization and restructure are essentially mean the same thing. The term used in the field of insolvency is ‘restructure’. It is important to note that the process of restructure may or may not involve changing the structure of an organisation or company. Therefore, restructure and not reorganisation is the term used.
During a restructure, communication and transparency are essential. This is particularly the case during the implementation stage of a strategy as it will likely have a direct impact on stakeholders such as employees.
The roles and responsibilities of retained staff may be changed and any potential impact or adverse reaction would need to be considered. In addition, it may mean that certain employees are no longer required. Staff are an important asset of any business and ensuring their well-being is critical during a restructure. Communication leads to a better understanding of the restructure process for employees and minimises any uncertainty among the ranks.
The government has introduces a simplified debt restructuring process specifically for small businesses. It has been designed to provide a cost effective way in which businesses with less than $1 million in liabilities can continue trading under their current owners.
It is a simplified process that is more cost-effective, allows company directors to remain in control, and provides them with the time required through extended relief from liability for trading while insolvent.
Find out if your company fits the criteria for a small business restructure.
Insolvency and taxation are two areas where there is constant legal reform. Being up to date with all your taxes is probably the most critical legal requirement, but companies should also ensure that they are diligent with respect to reporting and adequate record keeping.
Directors should also be aware of laws that have been designed to help them. This includes safe harbour provisions which provide directors with the time required to develop a plan or set of strategies.
Many organisations consider their employees as their biggest asset. Organisational change is a common strategy used during a restructure. This often involves changing the roles and job descriptions of employees.
Any business plan should consider the implications and likely impacts. Addressing early rumours and maintaining clear communication with employees is critical throughout the process.
Here are some tips on how to communicate with employees during a restructure.
For a restructure to be successful there are several key components that must be present throughout the process. These include:
For more information, read our Guide to Business Restructure.
If you haven't found the answers you are looking for, do not hesitate to reach out to us to receive free professional advice. We deal with a wide range of cases, including liquidation, insolvency, voluntary administration, and personal bankruptcy. Send us a direct message and we will be in touch with you within 1 hour.
Does restructuring sound like a mountain too big to climb? Our Resource Centre has detailed information from industry professionals on how business restructuring can help get things back on track.
Keep up to date with the latest news and real life case studies on companies that have used restructuring services to help secure their future.