InBus_Win09_56-96:InBusiness 1-61 11/12/2009 10:45 Page 66
SPECIAL REPORT | Financial Restructuring
whether or not their telecoms estate
is being maximised effectively,” he
advises. “Whilst more and more
companies are comparing
prices with other suppliers,
switching where appropriate, or
renegotiating for better prices
with their current suppliers, the
vast choice of providers and
packages available can make it
difficult to ensure the best
solution and costs are in place.”
The process of financial
restructuring may be undertaken as a
means of eliminating waste from the
operations of the company. For example,
by restructuring you may find that certain
departments of the company perform similar
functions, and in some cases one might render
the other obsolete. Rather than continue to use
financial resources to fund the operation of both
departments, they can be combined, cut
altogether or put to use in a productive manner.
This will reduce costs without damaging your
company’s ability to still achieve the same level
of productivity.
Morel believes that one simple area worth
reviewing is dormant circuits and eliminating BUSINESS INFRASTRUCTURE
unnecessary phone lines. “In the height of the The main focus is to establish a restructuring
economic boom, when companies expected to plan that maintains operations, saves jobs and
continue their growth curve, extra phone and protects the business infrastructure while
data lines would have been retained for retaining value to the business wherever
emergencies or even for particular projects over possible. This can be a difficult process,
time. Additionally, as companies have slimmed impacting upon several interested parties such
down in the past 12 months, the need for these as the employees, stakeholders and
lines has diminished. Given that the yearly cost management that have built and operated the
for a basic rate ISDN line is almost €400, there business but sometimes it simply cannot be
are generous savings to be found in this area avoided. Restructuring a company into a viable,
alone. Furthermore, through a full audit of your more efficient and profitable business will
estate, you can identify any past billing errors provide opportunities for most of those
that may have been incurred by a provider and involved; without restructuring they would
begin the process of recovery of this refund. get nothing.
Tanguy Morel, Director with Leyton.
These are additional savings that all companies When entering into a restructuring operation,
could surely do with right now.”
“COMPANIES ARE TRULY
it is vital that you do not do so blindly. An
Restructuring a business is likely to involve adviser with expert experience can help develop
the removal of financial burdens that may
FEELING THE IMPACT OF
an appropriate restructuring plan and will
include the cost of staff, premises and struggling
THE RECESSION WITH
analyse and consider the restructuring and
ventures. The legal mechanisms for dealing with
these will be different in each case and may
MANY FINDING CUTTING
refinancing options available to your business.
All businesses need to pay close attention to
involve compromising debt through a company
COSTS AND IDENTIFYING
matters of finance in order to remain profitable
voluntary arrangement or via an administration
SUBSTANTIAL SAVINGS
and potentially expand over time. From this
or even liquidation. The need for an insolvency perspective, financial restructuring can ensure
process will depend upon whether the A KEY CHALLENGE that your business is making the most efficient
company, group or business requires protection
FOR 2010.”
use of available resources and generating the
from its creditors while a restructuring plan is highest amount of net profit possible within the
put in place.
– Tanguy Morel
current economic environment.
66 InBusiness Winter 09
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