Business Restructuring
An Action Template for Reducing Cost and Growing Profit
Chapter One
Restructuring for Success:
The 10-Minute Check
Why You Need to Restructure
What exactly is business restructuring? In most cases, the term
refers to a turnaround tactic used by distressed companies in an
attempt to correct a declining financial situation or climb out of
bankruptcy. But business restructuring carries a variety of meanings
in business. For a private equity (PE) company, it may mean
"financial" restructuring, cleaning and reorganizing the financial
books using certain methods of financing, loans, or debt structures.
For a chief executive officer (CEO), it may mean cutting heads
through reductions in force (RIF) to decrease selling, general, and
administrative (SG&A) expense dollars. To me, and for NexGen, it
represents a way to build a competitive advantage, which is a good
thing, very different from the negative connotations associated with
the phrase today.
NexGen is my advisory firm, and we ope ... read full excerpt from: Business Restructuring: An Action Template for Reducing Cost and Growing Profit ebook