Sunday, April 15, 2012

Corporate Restructuring explained



According to Wikipedia: Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Other reasons for restructuring include
  1. Ø  a change of ownership or ownership structure,
  2. Ø   demerger, or a response to a crisis
  3. Ø  major change in the business such as bankruptcy, repositioning, or buyout.
  4. Restructuring may also be described as corporate restructuring, debt restructuring and financial restructuring.
  5. Ø  Debt restructuring, the reduction and renegotiation of debt
  6. Ø  Economic restructuring, the phenomenon of urban areas shifting their economic base from manufacturing to the service sector
  7. Ø  Cognitive restructuring, a process in cognitive therapy with the goal of replacing irrational beliefs with more accurate and beneficial ones
  8. Ø  Physical restructuring, the transfer, consolidation and closure activities of manufacturing plants

The worldwide economic recession has affected several organization in the Caribbean and especially Jamaica and only a properly executed Restructuring plan can restore their earning power.
HBS professor Stuart Gilson outlines the keys for a successful corporate makeover.To outline this important point excerpt is taken from the "Lessons of Restructuring" section of Gilson's introduction to Creating Value through Corporate Restructuring.
Although the case studies in this book span a wide range of companies, industries, and contexts, some common issues and themes emerge. Taken together, they suggest there are three critical hurdles or challenges that management faces in any restructuring program:
1. Design. What type of restructuring is appropriate for dealing with the specific challenge, problem, or opportunity that the company faces?
2. Execution. How should the restructuring process be managed and the many barriers to restructuring overcome so that as much value is created as possible?
3. Marketing. How should the restructuring be explained and portrayed to investors so that value created inside the company is fully credited to its stock price?
Failure to address any one of these challenges can cause the restructuring to fail.According to Gilson “A bungled corporate restructuring can turn a good idea into disaster.”


For information on how UHY Dawgen can assist you with a restructuring plan contact us. UHY Dawgen operates from 4 strategic locations in Jamaica.There are five easy ways to contact us. Simply call, email, fax, write or just stop by.
Unit 34, Winchester Business Centre, 15 Hope Road,
Kingston 10, Jamaica, West Indies
Telephone:876-9084007/7542074/ 9064827
 (International No.USA) 937-7-DAWGEN(937-7329436)
Fax:7540380 Email:info@dawgen.com
BRANCHES
§  Montego Bay,St. James
Shop EU6, Whitter Village, Ironshore, St. James
Telephone: 876-876-9533793/953-8486 Fax: 953-3058/7540380
Email:infobranch@dawgen.com
§  Ocho Rios, St.Ann
Shop C1, 101Main Street, Ocho Rios, St.Ann
Telephone: 974-5373/9748772 Fax: 754-0380  Email:infobranch@dawgen.com   
§  Mandeville, Manchester
 Shop L1 & K1,Grove Court Plaza, 16 Park Crescent, Mandeville, Manchester
Telephone: 962-6369 Fax: 754-0380  Email:infobranch@dawgen.com

UHY Dawgen is a member of UHY, an international association of independent accounting and consulting firms, whose organising body is Urbach Hacker Young International Limited, a UK company. Each member of UHY is a separate and independent firm. The services described herein are provided by UHY Dawgen and not by Urbach Hacker Young International Limited or any other member of UHY.  Neither Urbach Hacker Young International Limited nor any member of UHY has any liability for services provided by other members

No comments:

Post a Comment

Featured Post

Dawgen Global Firm Profile

Dawgen Global is an integrated multidisciplinary professional service firm We are integrated as one firm and provide several profession...