Corporate Restructuring: Reasons to Invest in Consulting

Companies that intend to grow in an increasingly competitive business environment may need to invest in their Corporate Restructuring to reduce costs and improve their efficiency and profitability, thus achieving a greater competitive advantage in the market. Furthermore, Corporate Restructuring may also be necessary for the company to reorganize its business, improving its efficiency and seeking greater synergy to maximize efforts and achieve objectives such as: increasing market share, reducing competition, becoming a dominant force in the market, achieve gains in scale, obtain tax benefits, among others. Typically, these restructurings occur in merger and acquisition processes, with the creation of a joint venture or a strategic alliance and, of course, all these processes generally require evaluation by the competent economic regulatory body, which has the authority to approve or reject such transactions. Types of corporate restructuring: Split: Occurs when one company transfers all of its assets to another. This process can be partial, when only a part of this asset is transferred, or total, in which, as the name suggests, all assets are transferred to another company and the organization is dissolved. Merger: Two or more companies come together to create an organization. The previous ones are then extinguished and the new one assumes all the rights and obligations of those that were extinguished. Incorporation: A company is completely absorbed by another and has assets and obligations incorporated, and is then extinguished. Transformation: Occurs when the company makes a corporate change, migrating from LTDA to S.A, for example. To do this, approval from partners and shareholders is required, in accordance with what is stated in its articles of incorporation or bylaws. Need for Corporate Restructuring As the name indicates, Corporate Restructuring concerns the reorganization of a company’s business through changes in its organizational structure, focusing on strategic objectives and, in most cases, involves a profound transformation in all sectors from the company. These processes involve a significant change in the business model, financial structure and even between teams to deal more efficiently with challenges and deliver more value to stakeholders. Restructuring can involve the dismissal of employees and, if handled poorly, can also lead to bankruptcy. A Corporate Restructuring strategy seeks to reduce the impact on employees, but, precisely because it affects the entire company, the adopted strategy also needs to take into account the objectives determined for the business and even the moment the company is experiencing, which makes hiring of a consultancy specialized in Corporate Restructuring, fundamental to finding the strategy that best meets the company’s needs. Blend Euro can help companies answer some questions:

How can I quickly improve my performance?
How can I develop actions to support my business?
How to lead the internal restructuring of my company?
How can I make smarter decisions regarding my business?
How can I have an investor’s perspective to evaluate my company?
How do I reshape my business model?

When to think about Corporate Restructuring consultancy Although there is no recipe that works for all companies, at a time when the current operational and business structure no longer meets a company’s growth needs, is unable to respond quickly to challenges or, Furthermore, if the way business is conducted does not produce the expected results, a Corporate Restructuring may be necessary. And these signs are often not easily seen by company leaders, which makes Blend IT’s work essential to review strategies, processes and even the people involved to understand the need to review the company’s management model, if structures are sized correctly, if resources, tools and systems meet the necessary requirements and seek the best strategy to optimize the business and obtain a comprehensive and solid view of the assets involved. Corporate Restructuring can often be the only option for a company to focus on creating competitive advantages or, ultimately, to stay alive in the market. Thus, Corporate Restructuring can be used to increase growth, but also as a correction – or survival – strategy. Forms of Restructuring Understanding the best Corporate Restructuring strategy involves knowing some forms of restructuring that have a major impact on business. Financial restructuring It is aimed at solving problems that lead to a drop in revenue, whether due to financial crises or even internal problems. Knowing the reasons, the company can look for ways to reduce costs and increase profitability, whether by renegotiating contracts and debts, relocating operations, selling assets or outsourcing services. Organizational restructuring Eliminating hierarchical levels, reducing bureaucracy, redesigning the job structure, reducing the number of employees, automating and optimizing processes, restructuring the portfolio, are some initiatives that contribute to making the company more efficient and productive. How Blend Euro can help in this process Relying on the help of specialized consultancy allows you to find the best strategy for all stages of the Corporate Restructuring process and guide the company to make the best and most intelligent decisions. In addition to helping sectors adapt to the new administration model, Blend Euro’s work also focuses mainly on the IT area, which plays a fundamental role in the process, as it is responsible for integrating all the company’s departments and ensuring synergy between the teams. Blend Euro provides all the support so that the restructuring process takes place without friction, mapping the IT infrastructure, integrating systems and ensuring greater precision in information processing, in addition to integrating systems, automating processes and eliminating human errors. Strategic changes need to be implemented quickly and safely, and Blend Euro is prepared to help during this transition. Our experts support your company’s Corporate Restructuring and help you face the typical challenges of an ultra-connected era, with several macroeconomic and geopolitical changes that impact business.