Corporate Restructuring

Corporate restructuring entails any fundamental change in a company's business or financial structure designed to increase the company's value to shareholders or creditor. Corporate restructuring is often divided into two parts: financial restructuring and operational restructuring. Financial restructuring relates to improvements in the capital structure of the firm. While operational restructuring, is the process of increasing the economic viability of the underlying business model.

In most turnarounds and bankruptcy situations, both financial and operational restructuring must occur simultaneously to save the business.

Financial restructuring may mean refinancing at every level of capital structure, including:

  • Securing asset-based loans (accounts receivable, inventory, and equipment)
  • Securing mezzanine and subordinated debt financing
  • Securing institutional private placements of equity
  • Achieving strategic partnering
  • Identifying potential merger candidates
  • Strategic divestment