Business Restructuring and Turnaround


Business Restructuring and Turnaround

The primary purpose of a business is to add economic value for its promoters and stakeholders consisting of its clients, suppliers, employees and the society at large. During this journey, businesses face many difficulties while dealing with the frequent changes in current UVCA (Uncertainty, Volatility, Complexity, Ambiguity) world. Whether to save the business or strategically reposition it for the future, restructuring can be a short and long-term answer to be relevant and maintain viability.
Business restructuring can be driven by a need for change in the organizational structure or business model of a company, or it can be driven by the necessity to make financial adjustments to its assets and liabilities. Usually, it involves both. The business model that worked in the initial phase of operation may or may not be viable in the long run. Companies restructure for a variety of reasons, few of them are listed below-

  • To improve competitive advantage by focusing on key products, technology and innovation
  • To comply with regulatory environment
  • To decrease or consolidate debt
  • To spin off a subsidiary company or to merge with another company
  • To optimize capital structure

Benefits of Restructuring and Turning around of Company:

Restructuring of a company should be a continuous process to calibrate businesses performance with the set objectives.
We, at Strat-Aegis, can help carryout industry benchmarking of processes and financials, define KPIs, design and develop performance indicators, and support promotors/ entrepreneurs to address the challenges by using following solutions-

Business Model Re-engineering

  • Re-alignment of business model on core competencies, outsourcing strategies
  • Alternate business models - Asset light strategies, Channel strategies

Financial Restructuring

  • Capital Management- Cashflow Forecasting, Liquidity Management, Working Capital Improvement
  • Adjusting funding strategy of a company - Recommendation of adequate Capital structure
  • Merging of two - three companies with similar DNA

Turnaround Strategy

  • Support with Interim management and change management
  • Unlocking Fixed Assets results into conversion of Fixed cost to Variable cost.