Corporate Turnarounds and Restructuring

Turnarounds and restructuring entails a fundamental change in a company's financial or operational structure designed to accomplish specific goals or strategies. The goals of restructuring may include:

• Avoiding insolvency
• Improving profitability
• Improving returns on assets
• Obtaining economies of scale
• Lowering a companies break-even point
• Lowering financial and operational risks
• Lowering the cost of capital
• Increasing shareholder value

Restructuring is often divided into two components: financial restructuring and operational restructuring. Financial restructuring relates to improving the capital structure of the company; for example lowering the overall cost of capital by adding debt to capital mix or rescheduling debt to improve cash flow. Operational restructuring is the process of increasing the economic viability of the underlying business model; for example the sale of a division, the abandonment of a product line or closing or scaling down unprofitable operations. In most turnaround situations financial and operational restructuring must take place at the same time.

Staffing Partners works with clients and financial institutions in turnaround and restructuring situations to independently evaluate the issues and challenges the company faces, to recommend financial and/or operational restructuring strategy and tactics and to implement the programme of measures to deliver successful outcomes to stakeholders.