Jeremy Priestley is a business development director with several years’ experience in the financial industry. He started his career working as a trainee accountant shortly after graduating from college and worked with two different local independent firms. In August 1986 he started learning about corporate restructuring and went on to become a managing partner in the firm. He helped the company grow a turnover of 800 percent and also provided advice to lenders and banks on various financial issues.
Jeremy Priestley also set up a receivables management business and built it up from scratch. Some of the firm’s clients included Microsoft, Yahoo, and NetApp. Here’s when companies might want to consider corporate restructuring.
Change of Business
In the business world, companies that refuse to change with the times will soon find themselves at risk of seeing their product line lose its influence in the market. One of the things companies should consider is exploring new markets and experimenting with new products. Moving with the times will enable them to reach out to new customers, increase sales and optimize their capacity. When companies change their nature of business, restructuring becomes important. Expanding operations to overseas markets might require changes in the company’s management profile to effectively implement changes in work policies, ensure compliance with international import and export regulations, and connect with the international market. Similarly, starting a new product line might require multiple changes in your company’s existing system of work, hiring new staff, and creating new work profiles.
Another main reason why companies need corporate restructuring is because of downsizing. Companies might resort to downsizing for a variety of reasons, and when that happens, it becomes necessary for restructuring. Adopting new business strategies, making staff redundant, altering the product line, and competition from business rivals are just a few reasons why corporate restructuring might be recommended for a company. Companies going through corporate restructuring because of being downsized will have to rework its team, communication structure, and re-organize job descriptions so as to ensure the smooth flow of business operations with the remaining workforce.
New Work Methods
The traditional nine-to-five workday caters to a particular type of work, but with the newer methods of work, especially in telecommuting, flex time, and outsourcing the need for restructuring arises. New work methods will require a change in policies, new systems, and work structures, including the overhaul of existing performance management systems. Many new work methods place a high emphasis on results rather than methods, strong communication policy, and flexible reporting relationships, all contributing to the need for restructuring.
Jeremy Priestley is an experienced financial professional and established a business working with receivables funders on audit and recovery work.