Your business plays a role in contributing to the economy by creating jobs and moving goods and services. Sometimes, reorganizing parts that are not working is crucial for growth. You may require a more competitive product, a different management approach, or an adjusted financial strategy.
A comprehensive valuation is necessary to create a restructuring plan. You may find that a division of your company is outdated and needs to be shuttered, sold, or retooled. Let an award-winning Dominion corporate restructuring lawyer at Begum Peláez-Prada PLLC assist you today.
Corporations may need to restructure for various reasons—from pandemics to supply chain emergencies to rampant inflation. When goods are too expensive to produce and consumers are struggling financially, your company can slip toward insolvency. To restore value, consider:
Merging with, acquiring, or being acquired by another entity are common strategies for infusing capital. Joint ventures also allow short-term affiliations on projects that can boost a bottom line.
Our managing attorney, Sasha Begum, has created a culture of providing the most competent and caring legal support. If your business is on the wrong track, a knowledgeable Dominion corporate restructuring attorney from our firm could help right the course.
Restructuring is a tool when a company’s financial needs are unsustainable, forcing action to reduce debt—typically by conducting a private placement or exchanging a debtor’s stake for equity. When companies are acquired or merged, they often receive an infusion of cash. In reverse, mergers may arrange to be publicly traded at completion. Acquiring companies might be advantaged by an expanded and successful product line or more ability to borrow after adding assets.
Our well-practiced business restructuring lawyers could also realign management’s duties and responsibilities and suggest where efforts are duplicated or where layoffs or executive cuts are needed.
Business combinations generally offer immediate advantages over developing and marketing a new product to increase market share or avoid incurring more debt. When competitors merge, it strengthens their position and reduces the number of competitors. These horizontal mergers also allow the new company to reduce costs because output increases and fixed costs do not.
The 2016 Insolvency and Bankruptcy Code made it easier for companies on the verge of bankruptcy to recover by relaxing some acquisition rules. The Income Tax Act of 1961 also favors business combinations with tax breaks using its set-off and carry-forward rules.
We understand the stress and frustration that come when your business stagnates or teeters on the edge of bankruptcy. If restructuring is the right solution for your corporation, the attorneys at Begum Peláez-Prada PLLC could present you with a detailed for success.
Sasha Begum and her team have almost 20 years of experience doing what works for businesses, from small startups to international corporations. Schedule a consultation with a Dominion corporate restructuring lawyer at our firm today.
