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At Xpert Advisory, we provide customized corporate restructuring services that align with your business goals. Whether you need to improve efficiency, manage mergers, or streamline operations, our experts offer strategic guidance and support to help your business thrive in the competitive UAE market.
Business restructuring involves two main types: financial and operational. Financial restructuring aims to stabilize a company’s finances through debt reduction, cash flow improvement, or equity increases, often by renegotiating debt or selling assets. Operational restructuring focuses on improving efficiency by reorganizing departments, cutting costs, or outsourcing non-core activities. Both types work together to strengthen the company’s overall health and resilience.
This involves strengthening a company's financial health by reducing debt, improving cash flow, or increasing equity. Methods include debt restructuring, selling assets, and infusing new capital.
This focuses on improving a company’s operations by streamlining processes, reducing costs, or enhancing efficiency. This can be achieved by reorganizing departments, closing underperforming facilities, or outsourcing non-core functions.
Corporate restructuring is driven by various reasons, depending on the unique circumstances and goals of a company.
Companies facing financial difficulties may restructure to reduce debt, improve cash flow, or increase equity. This helps them avoid bankruptcy and regain financial stability.
Restructuring can streamline operations, reduce redundancies, and cut costs, making the company more efficient and competitive.
Companies may restructure to focus on core business areas by divesting non-core assets or units, allowing them to concentrate resources on more profitable or strategic areas.
Shifts in the market, such as technological advancements or changes in consumer behavior, may necessitate restructuring to stay competitive.
Post-merger or acquisition restructuring integrates operations, systems, and cultures to realize synergies and achieve the deal’s intended benefits.
New laws or regulations may require companies to restructure to remain compliant, such as changes in corporate governance or tax laws.
Companies may restructure in response to a crisis, such as a significant financial loss or reputational damage, to stabilize operations and restore stakeholder confidence.
Companies may restructure to support growth, such as entering new markets or launching new products, requiring changes in structure or operations.
Reduce operating cost by downsizing corporate group, but add activities on licenses of the reduced group entities to conduct business unaffected
Reorganize group entities in the region to fall under subsidiary in UAE to avail tax free status and benefit on repatriation of dividends to foreign parent company under avoidance of double taxation treaty between UAE and the country where the foreign parent company is domiciled
Consolidate group companies set up in the region under holding structure set up in an off shore jurisdiction to achieve uniformity in corporate policy, better administration and manage exit strategy.
Reduce intermediary costs by incorporating entities or adding relevant activities to existing corporate licenses to conduct distribution through self-owned retail outlets or subsidiaries
Corporate restructuring involves making significant changes to a company’s structure, operations, or finances to improve its efficiency, financial health, or competitive position.
Companies may restructure for various reasons, including financial distress, improving operational efficiency, adapting to market changes, focusing on core business areas, mergers and acquisitions, regulatory compliance, crisis management, or supporting growth and expansion.
The two primary types are financial restructuring, which focuses on improving a company’s financial health, and operational restructuring, which aims to enhance efficiency and effectiveness in daily operations.
The benefits include improved financial stability, enhanced operational efficiency, better alignment with market conditions, a more focused business strategy, and greater long-term viability.
The duration of restructuring varies depending on the complexity of the changes needed. It can take anywhere from a few months to a couple of years, depending on the scope and scale of the restructuring efforts.
A restructuring advisor provides expert guidance throughout the process, helping to identify areas for improvement, develop a restructuring plan, and implement changes effectively while minimizing disruptions to the business.
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