The day-to-day running of a business can be unpredictable and there are a number of reasons you might want to restructure or reorganise your company during the course of its lifecycle.
Maybe you need to meet increased demand or avoid the risk of insolvency, or perhaps you need to make some changes to account for the fact that key directors are exiting the business. Regardless of the circumstances, there are a number of challenges you are likely to face – which is why you will need to seek specialist advice to ensure everything runs smoothly.
Having a clear restructuring purpose in mind
First and foremost, you need to ensure that you have a clear purpose in mind before starting a restructure. This is because the whole process can mean a lot of upheaval for directors, shareholders, staff, suppliers and everyone else involved. Simply put, you need to be 100 per cent sure that a restructure is in the business’ best interests.
If downsizing is your main goal, you will need to systematically remove specific services from your organisation. This requires thinking very carefully about the impact this will have on your cash flow and members of staff, as well as other concerns.
Under these circumstances, communication is key, as everyone involved needs to know, at the right time, what is happening to the business and how they will be affected.
If relocation is required, you will likely need to consider the wider impact this may have on staff, productivity and redundancies.
You might even wish to speak to a solicitor, too, particularly if you are concerned that downsizing will leave behind disgruntled employees.
Conversely, if you are planning a management reshuffle, you will face very different challenges. Under these circumstances, you will need to re-assess directors’ duties, how these will continue and how they might need to change or be incorporated into new roles.
You may also need to re-draft contracts, shareholders agreements, partnership agreements and other vital documents as part of the process.
Restructuring a business is complex and confusing, which is why it is important to seek specialist advice tailored to suit your unique circumstances.
To find out more about how McGills can help, please get in touch today.