When you started your Georgia business, you may have had in mind a much different direction for it than the one it is currently taking. Perhaps the changes in the economy or your own personal reasons are forcing you to take a hard look at your business and consider ways in which you can make its operations more cost effective. If you expect these changes to be significant, you may be ready to undertake the process of restructuring.
Restructuring involves modifying the company in response to financial pressures or an impending change of ownership. It may involve making significant changes to certain elements of your operating systems, reorganizing your debts or selling off assets, among other things. The goal is to return the business to making profits, but it is likely you will have a company that is quite different, at least in some respects, and it may not be an easy process.
Which direction is best for you?
If your business is facing a financial crisis, the recent failure of a product or a drastic change in your market, you may wonder if it is still possible to remain profitable. For some business owners, such hardships result in transferring ownership of the company to the next generation, preparing the business for a merger or buyout, or looking for ways to redirect the mission of the company. Restructuring a business often involves taking difficult financial steps, including any of the following or others:
- Consolidating, refinancing or renegotiating debt
- Finding ways to cut costs across the board or in specific departments
- Reducing staff or eliminating positions to cut payroll costs
- Making significant changes in company procedures
- Cutting or adding locations
- Eliminating certain products or services
- Selling off assets
- Exploring the option of filing for bankruptcy
The goal of restructuring your business is to move from financial distress to confident operations. However, because there are so many options and potential consequences to consider, it may be difficult to know where to begin. Fortunately, there are legal professionals who have the skills and experience to evaluate your situation and offer advice and assistance for the most appropriate course of action to help your business through its restructuring.
