Businesses that have experienced trading difficulties can often benefit from restructuring. It is worth considering how companies restructure and examining the reasons why they restructure.

Restructuring is a catch-all term, used by companies in trouble who need to change or risk losing business as well as successful ones who want to keep their edge.

Many try to turn the business around by cutting jobs, buying companies, selling off or closing unprofitable divisions or even splitting the company up.

Usually, what prompts companies to restructure is a falling share price or a share price that they feel does not fully reflect the company's value. In some cases, the need for restructuring comes directly from the directors business strategies, and does not specifically mean that the business is in trouble.

Splitting the company up may help investors get a clearer picture of all the potential revenue streams, but many companies are constantly restructuring, even when business is good, so they can stay ahead of the game.

For more information about restructuring your company, or the benefits and pitfalls associated with restructuring, contact your local HW office .