Restructuring

Success through restructuring

Restructuring usually involves a whole range of objectives; costs are to be reduced, revenues increased, liquidity improved and the entire company made competitive again. The company is comprehensively realigned in order to lead it out of a crisis and back to success. For this to succeed, it is essential to closely involve all relevant stakeholders such as employees, managers and investors in the process and to build or strengthen the necessary trust. In many situations, an external partner with the necessary experience and expertise from similar situations can make a valuable contribution. Management Factory can support companies in crisis with consulting services and executive interim managers.

Let us know which challenges your business is currently facing!

Savings and optimisation potentials are quickly identified. The challenge lies in consistent implementation.

What does restructuring mean?

Restructuring refers to a fundamental business reorganisation of an economic entity that goes beyond the optimisation of the organisational structure and processes in order to sustainably improve the quality of earnings, the strucuture of debt, equity, liquidity and competitiveness. Restructuring can involve changes to company law and is often accompanied by M&A processes. 

Management Factory offers the full range of services to successfully guide your company through the transformation – from a review of the business plan to the development of restructuring concepts and the implementation of a restructuring programme by an interim manager (e.g. as Chief Restructuring Officer).

What is the difference to turnarounds?

A turnaround refers to the averting of a life-threatening corporate crisis, but does not necessarily involve a fundamental restructuring of an economic entity. Serious financial and operational problems must be addressed in order to restore profitability and a positive cash flow. This often requires a realignment of company processes and the organisation in order to increase efficiency and effectiveness. Staff reductions, an adjustment of the business model, cost cutting and changes in corporate management are often part of a turnaround. The aim is to create a leaner and more efficient organisation in order to return to profitability. Turnarounds require rapid and decisive action. 

Financial crises are a serious threat to the continued existence of a company

Financial crises are a serious threat to the continued existence of a company or group of companies. Only resolute, immediate action can avert insolvency.

Companies can slip into a corporate crisis as a result of various factors: Loss of important sales markets, aggressive competitors, product- or market-changing innovations or simply mismanagement.

The focus in crises is often on the search for new business areas or the expansion of the product portfolio; often these expansions are outside the core competencies of the company and do not bring the desired financial success. This strategic crisis is often followed by an operational crisis, which in turn is followed by a financial crisis.

Network of restructuring experts and restructuring managers at Valtus Alliance

As the European leader in Executive Interim Management, Valtus Alliance has an extensive network of restructuring experts and restructuring managers.

ReTurn membership

Management Factory is a member of ReTurn, the independent Austrian expert forum for restructuring, reorganization and turnarounds. For its part, ReTurn is the Austrian chapter of the international Turnaround Management Association TMA.

Here are some of our references with regard to restructuring. Just click on the article in order to open and read it!