What do you do when your business hits the skids? In roughly 9 of 10 cases, the answer is: restructuring. There are many kinds of legal restructuring services, all of which require a team of skilled lawyers capable of working across different sectors and disciplines.
Let’s go through some of the main areas legal restructuring that can help you and your business get back on its feet:
Companies face a multitude of issues than can pose a serious threat to their existence. Luckily, the fact that problems have emerged doesn’t mean you’ve hit a wall in the business world. Instead of throwing in the towel, what you have to do is take immediate action and diagnose the root of the problem precisely with the assistance of a legal expert. Legal professionals handling corporate restructuring should put you on the recovery route.First, by detecting the cause of the issue and providing advice on the stabilisation of the crisis you’re going through.
They will advise you on implementing the right measures without delay, which frequently includes ways of cutting down on costs, such as downsizing.
Assessing and monitoring the employer covenant
The aim of covenant assessment is to help the client understand the extent to which it can afford supporting a pension scheme, both now and in the future, as well as overcoming any difficulties that come hand-in-hand with the intricate world of pensions legislation. In brief, the legal experts will not just help you assess whether you can meet the financial commitments of the scheme, but will also keep monitoring that you stay on track with honoring your legal obligations regarding the matter.
In a large number of cases, a major part of legal restructuring is debt collection & recovery: more on the topic here. There is no quicker or more efficient boost to your struggling business than receiving payments that were long overdue. A good restructuring lawyer knows this, and provides the services of debt collection by representing you professionally at the creditor’s meetings, making sure you finally get the money owed by your debtors through an established legal process.
Distressed real estate services
If not properly managed, the value of your real estate properties can seriously tail off, which leads to the so-called “distressed real estate” situation. That’s where the value of a knowing and planned restructuring intervention kicks in. Depending on the special circumstances around your real estate, you can expect the legal expert to devise a solution for development projects; provide asset management service, or restructure the existing assignment, which can include a change in sales strategy and refinancing.
Formal insolvency services
Bankruptcy or insolvency is a scenario all company executives understandably fear. If this disagreeable outcome becomes your reality, consider hiring a restructuring lawyer specialising in formal insolvency. What you need when your business is under the thumb of creditors or regulators is an expert who will handle all aspects of insolvency, including managing exposure to financial losses and limiting damage, protecting assets and if possible, identifying other value the company might hold.
If your operational costs have been going through the roof recently, and if your current corporate structure is burdened by vestiges of inactive companies or departments that have long fulfilled their purpose, it’s time to resort to an appropriate form of corporate dissolution. PwC LLP UK stated in their blog on corporate simplification the key benefits of this method: “Whether the motivation is cost saving, reducing corporate risk, or simply removing complexity, a tidy legal structure is increasingly being seen as a sign of a well-managed organisation.”
Does your firm need legal restructuring? Let’s rephrase this question in several ways: do you need to make it more profitable (probably yes), or better suited to the new developments on the market (again, probably yes)? Are your debtors ignoring your overdue payment reminders? Is your property under foreclosure order? In all of the cases mentioned above, you would be wise to hire the services of a legal restructuring team. Tell us about your issue by filling this quick form, and we’ll get in touch with bespoke recommendations of our most remarkable lawyers.