In the business world, companies sometimes face challenges that make them urgently need to change their organizational and administrative structure. Corporate restructuring is considered one of the solutions that offers struggling companies a new opportunity to rebuild themselves and regain their position in the market. But what is restructuring?

Restructuring is defined as a set of actions taken by companies, institutions, and existing entities to adjust their financial and operational situations. According to the Cambridge Dictionary, it is “the process of organizing a company, business, or system in a new way to make it work more effectively.”

Why Restructuring?

Given the major economic developments, the fundamental shifts occurring globally, and the succession of global crises, it has become inevitable for companies to struggle and incur significant losses that may ultimately lead to bankruptcy or liquidation and exiting the market completely. Hence, the need for restructuring has emerged as an effective tool to save companies, improve their performance, and regain the trust of their employees and customers. Among the most important benefits of restructuring are the following:

Increased Efficiency and Productivity:

Restructuring improves internal processes and identifies areas of waste to eliminate them, ultimately leading to optimal use of resources and increased efficiency and productivity.

Adaptation to Market Changes:

Restructuring enables companies and organizations to develop new products or services that meet customer needs and preferences. It also helps them enter new profitable markets and exit unprofitable ones, keeping the companies and organizations in a competitive position.

Cost Reduction:

Restructuring helps build the ideal organizational structure, define individual responsibilities, merge duplicated functions, and review salaries. It also introduces automation, reducing reliance on human labor to improve operational efficiency, thus lowering expenses and reducing costs

Improving Cash Flow:

Restructuring can improve cash flow by implementing strong policies for collecting dues and debts, selling non-core assets, and enhancing working capital management

Enhancing Communication Between Departments:

Restructuring establishes a specific system that ensures the flow of information, improves communication processes, and encourages feedback, ensuring a culture of teamwork and directing employee efforts toward a common goal.

Who Needs Restructuring Services?

1. Companies seeking governance and building an organizational structure
2. Companies aiming for automation or digital transformation.
3. Companies in a state of dissolution or acquisition.
4. Companies striving to regain their financial and administrative stability.
5. Companies looking to expand and enter new markets.
6. Companies experiencing a decline in productivity rates and resource wastage.
7. Companies that lack sufficient cash flow.
8. Companies struggling with accumulated debts.

Types of Restructuring

Administrative Restructuring

This is a process undertaken by companies and organizations to improve the performance of the administrative apparatus by reviewing organizational structures and redistributing responsibilities among units, while defining the relationships and communication patterns between them. This reduces overlaps, increases cooperation and harmony, and enhances the overall efficiency of the organization.

Operational Restructuring

This process aims to improve the efficiency of operations within the organization to achieve strategic objectives. It focuses on reevaluating and adjusting operational systems and processes, involving a comprehensive analysis of processes, workforce, and the technology used in the company. The goal is to maximize the use of available resources and reduce unnecessary costs.

Financial Restructuring

This type of restructuring involves reorganizing the company’s financial structure to enhance its financial stability. It focuses on improving the capital structure, managing or rescheduling debts, improving cash flow, providing liquidity, and more.

Strategic Restructuring

This process focuses on improving the organization’s long-term performance by reevaluating and updating its vision, mission, strategies, culture, processes, and organizational structure comprehensively. The aim is to correct the overall performance of the company or institution from various aspects.

Restructuring Strategies

In today’s fast-paced market, restructuring strategies have become one of the most important tools companies use to adapt to challenges, changes, and rapid market developments. These strategies vary depending on the nature and context of the company, but the primary goal remains the same: to improve the company’s efficiency and increase its ability to achieve sustainable profits. Below are some key restructuring strategies:

• Asset Reassessment: This involves comparing the current value of assets with their expected value after restructuring
• Debt Restructuring: A variety of options can be employed, including debt reduction, extending repayment periods, waiving interest payments, debt-for-equity swaps, or offering additional guarantees.
• Capital Increase: This can be achieved by increasing partners’ contributions or offering new shares to the public in the market to raise funds.
• Increasing Cash Flow: This can be achieved through various methods such as accelerating the collection of accounts receivable, selling assets to generate liquidity, reducing inventory levels, or issuing bonds and sukuk to meet financial needs.
• Reducing Outgoing Cash Flow: This can be accomplished by implementing more control and monitoring mechanisms to reduce expenses, aiming to improve the debtor’s financial situation.
• Administrative Restructuring: Examples include changing management, laying off some employees, or redistributing workloads to optimize performance.

Risks of Not Implementing Restructuring Services:

1. Companies and organizations may struggle to keep up with the latest technological tools and innovations, hindering their growth and competitiveness.
2. Loss of Talent and Expertise: Companies risk losing skilled employees as they may seek better opportunities, leading to a significant drain on institutional knowledge and capabilities.
3. Decline in Profitability and Revenue:
4. Without restructuring, organizations may experience a continuous decline in profit margins and revenue streams, affecting overall financial health.
5. Escalation of Financial Problems:
6. Erosion of Customer and Employee Trust:
7. Decreased Brand Value:

Why Choose Restructuring Services from ” mashroo3k” Consulting?

Discover the advantages of the restructuring service with “mashroo3k” Company

There are several reasons why ” mashroo3k” Consulting is your top choice for restructuring services. Here are the key ones:

Specialized Team of Experts:

” mashroo3k ” employs 350 consultants who are fully knowledgeable in all aspects of restructuring services. These include identifying areas of weakness, setting objectives, collecting and analyzing necessary data, developing a restructuring plan, executing it, and monitoring and evaluating the outcomes.

Extensive Experience:

With 10 years of experience in the Middle Eastern market, ” mashroo3k ” has been a valuable partner to many organizations and companies. During this time, we have helped numerous institutions discover growth and expansion opportunities, enabled many companies to adapt to market changes through our guidance, and assisted many entities in reducing costs and increasing profits based on our research and analysis.

Broad Business Partnerships:

” mashroo3k ” Consulting has 12 international branches and agents in China and Singapore, offering comprehensive and diverse solutions that are not limited to any specific geographic area. This allows us to provide global insights and resources to our clients.

Our client: If your company or organization suffers from debt problems, targeting customers, the flight of talents and expertise, and poor communication between work teams; Don’t wait until you become a candidate for your job, contact our experts and take a step towards sustainability.