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Restructuring is the process of changing a company’s operations, organizational framework, or finances. Business restructuring is also referred to as reorganization. Restructuring results in a new business model that helps the company grow, improve, and expand. Our Texas business attorneys discuss reasons why a business needs to be restructured and the benefits of hiring an experienced attorney for business restructuring.

Reasons Why Your Business May Need to be Restructured

There are many reasons to restructure a business. Some factors that indicate it is time to restructure your company include:

Declining Financial Performance

Restructuring may be the best option when a business experiences long-term financial decline. Restructuring a business can reduce costs and improve efficiency. It can improve performance in key areas, improve cash flow, and increase profits.

Regulatory Changes

Many businesses are subject to government regulations and oversight. New regulations may require a business to restructure to comply with the new requirements.

Pursuing New Opportunities

A company may have the opportunity to pursue new business opportunities. However, restructuring may be necessary for the company to grow in a new direction. As a company expands, it may outgrow the original structure.

Changes in Market Conditions

Changes in market conditions may require companies to alter how they do business. Depending on how the market is changing, a company may need to restructure to remain competitive as it adapts to new conditions.

Losing Clients and Customers

A company may need to restructure if they are losing clients and customers. Client turnover can indicate a problem with the company’s organizational or operational structure. Customers who benefit from the restructuring will be more likely to remain loyal to the company.

Improvement Is Unlikely Under the Current Model

A thorough analysis of the current business model does not indicate the company can improve. Restructuring may be necessary to give the company a new model that allows for improvement and growth.

Downsize Workforce

As businesses expand and evolve, some roles may become redundant. Employees are doing the same job. The company may need to restructure to downsize its workforce.

Restructuring includes reviewing job descriptions to identify redundant positions. Teams and jobs can be reworked to ensure the workforce is streamlined and efficient.

Why Do You Need an Experienced Business Lawyer to Restructure Your Company?

A company benefits from using an experienced attorney during the restructuring process. An attorney can save your company money and time by avoiding costly mistakes and maintaining a timeline for the restructuring process.

A lawyer also protects your interests. It is crucial to have someone working on your behalf to negotiate the terms of the business restructuring to ensure your rights are protected.

Some companies are subject to government regulations. An attorney ensures that the restructuring plan complies with all laws and regulations.

Contact Our Texas Business Attorneys for a Consultation

Our Texas business attorneys at Sul Lee Law Firm PLLC have extensive experience in corporate restructuring. We meticulously handle all matters related to restructuring your business to ensure costly mistakes do not happen. Contact our office to schedule a consultation with one of our business lawyers to discuss whether your business needs to be restructured.