Restructuring - Argo Audit - Consulting, Audit, Tax Services

Argo Audit - Consulting, Audit, Tax Services > Services > ADVISORY > Restructuring

To err is nature, to rectify error is glory.

George Washington

We offer a wide range of services that are tailored to your own situation in order to help you to evaluate opportunities, choose the most effective restructuring plan and achieve your strategic goals.

Our restructuring services include:

Corporate restructuring: We help companies and investors improve their total expected return in times of uncertainty. We support you in managing your internal processes and in allocating investments and capital.

Reasons for Corporate Restructuring

Change in the Strategy
Lack of Profits
Poor Cashflows
Reverse Synergy

Our audit approached is governed by policies that ensure compliance with the International Standards on Auditing, International Standards on Quality Control and the IFAC Code of Ethics for Professional Accountants.

Types of corporate restructuring

Financial Restructuring

This type of restructuring may take place due to a severe fall in the overall sales because of the adverse economic conditions. Here, the corporate entity may alter its equity pattern, debt-servicing schedule, the equity holdings, and cross-holding pattern. All this is done to sustain the market and the profitability of the company.

Organisational Restructuring

The Organisational Restructuring implies a change in the organisational structure of a company, such as reducing its level of the hierarchy, redesigning the job positions, downsizing the employees, and changing the reporting relationships. This type of restructuring is done to cut down the cost and to pay off the outstanding debt to continue with the business operations in some manner.

Types of Corporate Restructuring Strategies

Merger

This is the concept where two or more business entities are merged together either by way of absorption or by forming of a new company. The merger of two or more business entities is generally done by exchange of securities between the acquiring and the target company.

Demerger

Under this corporate restructuring strategy, two or more companies are combined into a single company to get the benefit of synergy arising out of such a merger.

Takeover/Acquisition

Under this strategy, the acquiring company takes overall control of the target company. It is also known as the Acquisition.

Joint Venture (JV):

A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.

In a joint venture (JV), each of the participants is responsible for profits, losses, and costs associated with it. However, the venture is its own entity, separate from the participants’ other business interests.

Strategic Alliance

A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. The agreement is less complex and less binding than a joint venture, in which two businesses pool resources to create a separate business entity.

Working capital management:

Working capital management is a business strategy designed to ensure that a company operates efficiently by monitoring and using its current assets and liabilities to the best effect. The primary purpose of working capital management is to enable the company to maintain sufficient cash flow to meet its short-term operating costs and short-term debt obligations.

When a company does not have enough working capital to cover its obligations, financial insolvency can result and lead to legal troubles, liquidation of assets and potential bankruptcy. Thus, it is vital to all businesses to have adequate management of working capital.

We help you improve cash flows in current capital accounts:

– Receivables

– Payables

– Inventory

– Other NCA

by improving your overall liquidity and offering effective strategies for managing your credit lines.