Business and financial restructuring advisory has an expertise in provide corporate restructuring solutions. These solutions are strategic in nature and hence require lot of planning and expert advice before implementation.
The primary objective of financial restructuring is to maximize company’s net worth to its owners and creditors. It is also undertaken as a defensive strategy to protect the company from bankruptcy or hostile takeover. Here, one of the roles of an advisory firm is to suggest a new capital structure for the company in order to restructure the items of its balance sheet. Depending upon the circumstance, an increase in the amount of debt may be suggested in order to lower the capital cost and vice-versa.
On the other hand, advisory firms help in restructuring business models in order to increase the overall productivity and profits of their firm. Business restricting solutions include mergers and acquisitions, closure of sick units or a product line, divestment, and many more.
A detailed analysis of the current state of the organization is done before suggesting possible restructuring alternatives. The benefits and the cost involved in implementing the alternatives are suggested to the client to help him take a final decision.
Apart from this, advisory firms provide assistance in implementing the solution. If the client decides to opt for a merger, then the firm does the necessary documentation work and negotiations on behalf of the client.
Most of the advisory firms have an online presence that can provide you an insight into their line of business.