- July 28, 2021
- Posted by: admin
Business restructuring services in Kenya is a vital factor throughout the life of a business from a start-up to the maturity, the business experiences the needs to adapt and restructure the existing processes, systems and the teams. Those organizations who quickly understand and identify the need to restructure their business at the right time will continue to grow on the other hand those who don’t, struggle and often fail.
There are many reasons that the companies may have to restructure their business and reorganize the operations. There are several circumstances where the companies need to restructure such as change in the nature of a business, downsizing, quality management, financial issues or update in a technology.
Benefits of Business Restructuring Services in Kenya
There are many reasons under the restructuring of a business in Kenya such as identifying new opportunities, reduce costs, incorporate new technology or to improve competitive advantage. The two most important and vital impacts of a business restructuring in Dubai are: Success or Survival!
Business Restructuring Services in Kenya
Good entrepreneurs understand when the time for change has come and instantly take appropriate measure for the essential and necessary transformation to be on the safe side. An audit will be conducted in order to identify the reasons and drawbacks and analyse all the factors which needs to be addressed. Business restructuring services in Kenya can enhance the efficiency of your business
There are many signs to restructure your business for the growth or to sustain in the market such as:
Profit comes to screeching halt
Turnover is high
Loans & bankruptcy
Morale is low
Old fashioned systems
Employees are overworked
Employees are under utilized
Lack of management
Market is evolving
Shift in prices
Business Recovery Services
2Max Group Auditing offers business restructuring services in Kenya by drawing a stable portfolio of financial and operational activities to build platform for a sustainable growth. Every business restructuring scenario in Kenya needs a different professional expertise and skills.
2Max Group offers a wide range of business restructuring services in Dubai that are tailored to your individual circumstances and help you to evaluate opportunities in order to be successful or to sustain in the modern and tough market. If you are not generating profit and your business is not performing well, we will help you in restructuring your business.
Best Business Restructuring Services in Kenya
2Max Group Auditing is one of the leading business recovery and business restructuring services provider in Kenya. Our professional experts are capable of identifying the problems and develop feasible solution and implement them with sensitivity, precision and care.
Our business restructuring services team in Kenya offers comprehensive operational and financial business restructuring services. Our deep expertise and skills allow us to quickly find out the problems and to react immediately. 2Max Group will save your business from falling and will help you in surviving and make your business great again!
Types of Corporate Restructuring
- Merger / Amalgamation: Laws in India use the term ‘amalgamation’ for the merger. In general terms, the merger is a combination of two or more companies into one, usually by offering the stockholders of one company securities acquiring the company in exchange for the surrender of their stocks. Amalgamation is the merger of one or more business with another to form a new company. 2Max Group Group understands the needs, analysis the compliances in an effective manner to provide comprehensive advisory to resolve complex matters involved in the company.
- Merger through Consolidation: A consolidation merger is a combination of two or more companies forming into a ‘new company’. Here all companies are officially dissolved and altogether a different entity is created whereby the acquired company handovers its shares, assets, and liabilities to the obtaining company.
- Merger through Absorption: An absorption merger is a combination of two or more companies into an already ‘existing company’.
- Demerger: Demerger is a method of corporate restructuring whereby an entity’s business operations are divided into one or more components. Demerger can be of three forms such as split-up, spin-off, split-off.
- Acquisitions and Takeovers: It is defined as an act of acquiring effective control by one company over management or assets of another company. Thus, in an acquisition two or more companies may stay separate, independent legal entities, however, change in control of the companies can be there. When an acquisition is ‘unwilling’ or ‘forced’, it is termed as a takeover.
- Joint Venture: It is business preparation where more than two organizations share the ownership, governance, expense, return of investments, profit, etc. Joint Venture also refers to an arrangement where companies contribute to the equity capital of a new company in pre-decided proportion.
- Divestiture: In short, divestiture refers to the sale of assets, however not in a fragmentary manner. Divestiture is used to organize resources for core business by comprehending the value of non-core business assets.
- Buyback of Securities: When a business is holding surplus cash that is not necessitated in the medium term; it is judicious for the organization to return this extra cash to its shareholders. Buy-back of securities is one of the approaches used to return the extra cash to its shareholders.
- Reduction of Capital: It is a process whereby a company is allowed to reduce liability or extinguish on any of its shares if the share capital is allowed to cancel or not paid up.
Advantages of Business Restructuring
- Strategic Benefit
- Managerial Effectiveness
- Utilization of excess capacities
- Enhance shareholders confidence in the company
- Complimentary Resources
- Economies of Scope
- Utilization of Surplus Funds
- Economies of Scale
- Economies of Vertical Integration
- Tax Shields
- Reduce the cost of operations
- Make the company more competitive to excel in the market
- Reduction of the interest burden