Finances are a tricky topic for businesses, as organized and functional finances are essential to keeping a business afloat. It’s inevitable that unexpected curveballs will be thrown your way that can be difficult to handle, especially if you are not knowledgeable about the finances. At the Law Office of Thomas W. Drexler, we are experienced Chicago Il bankruptcy attorneys that have the knowledge and dedication to make sure finances aren’t a worry. In some situations, financial restructuring is beneficial to our clients as either part of their financial strategy or because of compulsion.
What is Financial Restructuring?
It is sometimes necessary to restructure or reorganize the financial structure of your business in order to create the most beneficial and ideal financial environment for the company as a whole. Reasons for financial restructuring include poor financial performance, external competition, the loss of market share or emerging market opportunities. The steps for financial restructuring should be completed as quickly as possible, which is where our Chicago, Il bankruptcy attorney comes into play. We can swiftly step in and determine the right course of action for your business.
Steps Involved in Financial Restructuring
Assessing your company’s situation is the first step in financial restructuring. What factors drive the business’ success and failure? What records need to be reviewed before taking further steps? Next, it is important to consider what operational improvements can be made to address any existing problems. Keep in mind that a reduction of payroll is typically part of this process. If changes are being made, it is best to make them all at once.
Debt and capital restructuring usually comes next. A debt-for-equity exchange may occur only if there is a looming threat of bankruptcy in the near future.
If your company has not found success with the previous steps, filing for chapter 11 bankruptcy is the next step. Companies that are able to successfully reorganize under Chapter 11 bankruptcy typically have isolated problems to address.
As you can tell, this process can be extremely overwhelming if you are not well-versed in the proper steps to take and when to take them. Utilizing our Chicago, Il bankruptcy attorney can be the difference between your company’s success and its failure. If you are interested in our services, contact the Law Office of Thomas W. Drexler today to take advantage of a free consultation.