What is corporate restructuring and when is it recommended?
Corporate restructuring is a strategic process that seeks to reorganize the financial, operational or legal structure of a company to improve its efficiency, competitiveness and viability. It may involve changes in management, cost reduction, debt renegotiation, process optimization or sale of non-strategic assets.
It is recommended in the following situations:
- Financial crisis: when the company faces liquidity or insolvency problems.
- High levels of debt in relation to Ebitda / Cash Generation: To avoid defaults and improve the financial structure.
- Inadequate Debt Structure: When the company has a distribution of liabilities that compromises its financial stability, either due to excessive debt, imbalance between maturities or high financial costs.
- Low profitability: If margins are reduced and it is necessary to optimize costs.
- Expansion or mergers: To adapt the structure to accelerated growth.
- Market changes: When the company needs to innovate or reposition itself.
Restructuring allows companies to become viable, recover their stability and strengthen their future with an efficient and sustainable strategy.
Company restructuring and refinancing plans in Maraz
When a company faces financial distress, time is a critical resource. Inaction or delayed decision-making can lead to progressive deterioration that, in certain cases, becomes irreversible. The earlier issues are detected and corrective actions are implemented, the greater the likelihood of a successful turnaround.
Warning signs, such as liquidity problems, accumulation of arrears in payments to suppliers or non-compliance with financial obligations, must be addressed immediately. Early restructuring allows the company to renegotiate debts, optimize operations and improve profitability before the company reaches an insurmountable situation.
If crisis symptoms are ignored, the company may reach a point of no return, where rescue options are drastically reduced and liquidation becomes the only alternative. Acting quickly, decisively and with knowledge can make the difference between a successful restructuring and definitive closure.
Business restructuring plan for SMEs and large companies
In crisis situations, corporate restructuring is key to improving profitability and ensuring financial viability. The process begins with a financial and operational diagnosis to assess liquidity, indebtedness and process efficiency. This analysis helps to identify the main problems and define strategic objectives, such as cost reduction, debt renegotiation and optimization of the organizational structure.
One of the fundamental strategies is the refinancing of debt, by extending payment terms, reducing interest rates or converting debt into equity. At the same time, cash flow management must be improved by adjusting costs, optimizing collections and negotiating better terms with suppliers. It is also essential to redesign the business model, focusing on profitable products and services, as well as optimizing the supply chain.
The success of the plan depends on constant monitoring, establishing performance indicators and adjusting strategies according to the results obtained.
Business viability plan: key strategies for recovery
When a company is in a compromised financial situation, the Feasibility Plan is essential to try to reverse the situation and achieve its recovery and return to the path of sustainable growth. Its success depends on an accurate financial diagnosis that optimizes costs without affecting operations. Based on the current situation and financial projections, an Action Plan is designed to make the company viable. With the different actions proposed in the Plan, their impact on the financial model can be estimated so that we have initial financial projections (prior to the execution of the Plan) and others including the different actions proposed in the Viability Plan and their impact on Results, Balance Sheet, Cash-Flow and main control ratios.
Company refinancing and debt renegotiation
These are key strategies for improving financial stability and ensuring business continuity. Refinancing makes it possible to restructure financial commitments, adjusting terms and interest rates to relieve pressure on cash flow. This option is fundamental when the company faces liquidity difficulties, since it provides greater flexibility in the payment of obligations.
On the other hand, debt renegotiation involves agreements with creditors to modify payment terms, reduce rates or even obtain partial write-offs. To achieve this, it is crucial to demonstrate the viability of the business and present a solid recovery plan. Maintaining transparent communication with banks and suppliers increases the chances of success.
Both strategies must be supported by rigorous financial management and planning to ensure long-term sustainability.
Bankruptcy restructuring: when is it necessary?
It becomes necessary when a company is in a situation of actual or imminent insolvency, i.e. when it is unable to meet its payment obligations on a regular basis. Its objective is to avoid liquidation through debt restructuring and business reorganization.
The Insolvency Law establishes that companies must file for insolvency proceedings when they foresee that they will not be able to meet their financial commitments, thus avoiding greater liability for the administrators. Before reaching this point, it is possible to resort to restructuring plans, negotiating with creditors to modify payment conditions and guarantee the continuity of the business.
If these measures are not sufficient, insolvency proceedings can suspend seizures and foreclosures, providing a legal framework for reaching agreements with creditors or, ultimately, liquidating the company in an orderly manner.
Stages of the corporate restructuring process
Our approach focuses on the development of a detailed Feasibility Plan, designed to serve as an essential “road map” in the implementation of strategic changes in financial and operational management. This plan addresses aspects such as:
Company Viability Analysis and Initial Diagnosis
We carry out an in-depth diagnosis to understand the financial and operational difficulties of the company, analyzing the causes that have originated the current situation and identifying the levers for improvement.
Design of the Business Restructuring Plan
A detailed action plan is prepared with measures that affect different areas of the company’s management, with a measurement of the financial impact of each of the proposed measures, a schedule of actions and clearly defined responsibilities for carrying out each of them.
Execution of the Feasibility Plan
We assist in the implementation of the recommendations of the Viability Plan, ensuring that the company not only overcomes its current difficulties, but also positions itself to generate long-term value for its shareholders.
Liquidity Optimization
We propose strategies to improve cash flow, optimizing margin and working capital management, including the renegotiation of current liabilities and the identification of non-core assets for sale.
Refinancing of Financial Debt
We facilitate negotiations with banks and other creditors to restructure existing liabilities and, when necessary, seek additional financing to enable the continuity and sustainable growth of the company.
Results Monitoring and Evaluation
The monitoring of the Feasibility Plan is periodically evaluated and appropriate adjustments are proposed according to the circumstances following the implementation of the Initial Plan.
Who is our business restructuring service for?
Our corporate financial restructuring service is aimed at companies facing economic difficulties, liquidity problems or imminent insolvency and seeking a strategic solution to ensure their viability. We serve companies from all sectors, from SMEs to large corporations, that need to optimize their debt structure, renegotiate financial commitments or avoid insolvency proceedings.
We have extensive experience in complex business distress situations, having helped numerous companies overcome financial crises through effective and customized strategies. Our approach is particularly useful for businesses with unsustainable financial burdens, difficulties in accessing financing or the need to reorganize their resources to improve their profitability. We also support companies that, while not in immediate crisis, wish to anticipate future problems through efficient refinancing and restructuring strategies.
We work with administrators, managers and owners to design solutions adapted to each situation, allowing them to recover stability and guarantee business continuity.
Why choose Maraz for your Business Restructuring Plan?
Choosing Maraz for your Business Restructuring Plan means counting on a team of experts in the recovery of companies in financial distress. Our methodology is based on a detailed analysis and strategic solutions tailored to each business, ensuring sustainable results.
Experience and professionalism
Customized solutions
Transparency and trust
We specialize in negotiating with creditors and financial institutions, reaching agreements that alleviate the financial burden and ensure long-term viability. Our multidisciplinary team, with expertise in insolvency law, finance and business strategy, offers a comprehensive approach to each case.
With a proven track record in complex restructurings, we have helped companies of all sizes overcome crises and restore profitability. At Maraz, we not only solve financial problems, we transform the crisis into an opportunity for growth.
If your company is facing difficulties, we are the strategic partner you need to move forward successfully, minimizing risks and maximizing opportunities.
Our success stories
At Maraz, we measure our success by the real impact we have on each company we work with. Through a strategic, customized, and pragmatic approach, we have helped financially restructure numerous companies.
Customer testimonials
The best proof of our commitment and excellence are the results we generate. Our clients trust Maraz to restructure their companies, with customized solutions and expert support.
Preguntas Frecuentes sobre la reestructuración de empresas
We have compiled the most frequently asked questions about our Business Restructuring services. If you do not find the information you are looking for, please contact us and our team of experts will be happy to advise you.
What strategies do you use to improve my company's capital structure?
Business modeling, analysis of the banking pool and financing to establish, based on future business projections, whether the business is properly financed and, if so, to evaluate the financing needs and design the optimal structure for the company. Once the proposal has been designed, it must be executed through negotiations with financial institutions and investors.
Can you help me negotiate with banks, creditors and administrations?
Yes, after designing the structure that solves the financing problem, it is necessary to negotiate with banks, suppliers, other creditors, public administrations, etc. This negotiation is complex. But if the business plan is clearly stated, the needs of the company and the business plan are correctly quantified, it is easier for the risk departments of the financial institutions to understand it and be inclined to refinance. The same applies to other creditors, suppliers and public administrations.
What is the difference between a Business Viability Plan and a Restructuring Plan?
The Business Viability Plan and the Restructuring Plan have different objectives and contexts. The former seeks to assess a company’s ability to remain operational and profitable in the long term, designing strategies to optimize costs, diversify revenues and improve its competitiveness. It is applied to both growing businesses and those with moderate financial difficulties, helping to prevent future problems.
The Restructuring Plan, on the other hand, focuses on companies with serious financial problems or at risk of insolvency. It aims to reorganize the operating and financial structure, renegotiate debts and take urgent measures to restore stability. It focuses on agreements with creditors, cost reduction and access to financing, avoiding or managing a possible insolvency proceeding.
While the Viability Plan is designed to ensure the future of the business and improve its profitability, the Restructuring Plan is an emergency strategy to avoid bankruptcy and restore solvency. In addition, restructuring involves creditors and financial institutions, while in the viability plan the main actors are managers and investors. Both are key tools, but their application depends on the financial state of the company and the urgency of the situation.
Other Maraz services
In addition to our Business Restructuring service, Maraz offers a range of services designed to boost the growth, solvency and profitability of your company.
