Restructuring for Value Creation

Restructuring for Value Creation

Facilitating restructuring of the company by way of consolidation/ merger/ hive off of business as per the requirement for better management or for the purposes of various strategic transactions.


Need:

Restructuring helps companies to effectively and efficiently achieve various objectives, like to sell off a part of their business or consolidate businesses to sell them off as a whole; for meeting the criterion of various government contracts/ requirements for projects; for various tax benefits; benefits under various government schemes; to solve intricate business problems or simply for an efficient business structure.


What do we do:

We help the company in its restructuring activity right from the identifying the reasons for restructuring, the kind of restructuring required, various legal and regulatory requirements of the plan, upto the execution of the restructuring plan. We help the organizations achieve restructuring with minimum tax impact.

We help organizations, with structural or business performance issues or undergoing a transition or in distress, to improve performance, manage and accelerate change, and mitigate problems.

We also help in the early identification of risks, investigating and monitoring underperforming businesses, and working with the company to make and execute the right commercial decisions.

We can significantly minimize costs through streamlining client’s corporate structure, as well as deliver sustainable improvements in cash and working capital levels.

We can help corporates in deciding,

a. Whether to consolidate the group activities under one roof for reducing the cost, eliminating duplication of activities and so on; or
b. Whether to demerge the activities/ divisions into separate entities, considering their distinct nature of risk, competition, sector, business cycle and so on.
c. We specialize in assisting companies which are,
1. Potential targets,
2. Potential acquirers,
3. Undergoing reconstruction,
4. Entering into significant transactions with related parties.

 

How do we do it:
We meet with the clients top management team and understand its short term requirements and the long term plans. We understand their objective for restructuring. Many a times, we are approached by the clients for a transaction and the restructuring is suggested by us for effective and tax efficient execution of the transaction. On understanding the objective for restructuring and the current structure of its organization, we come up with various options for restructuring along with the legal and regulatory compliances to be followed in each option and the cash outflow in their execution as a part of the process. On discussing these options with the top management team we finalize the most suitable option and help the company in its execution. Our experienced team of professionals with their understanding and ability to deal with complexity of regulatory, tax and legal environment can help the companies in selection and execution of the most suitable restructuring plan for the company.