Top 5 Ways Of Corporate Restructuring

There are times when a particular company underperforms and is desperately looking for market opportunities to restructure and recover. To begin with, and to prove the point, it is extremely important to find a strong management team that is focussed to turn the poorly performing businesses around by restructuring shareholder value.

Why does a business face critical hurdles?

There are several challenges that a small business face to recover. Among those, the management faces these three in any restructuring program:

1. Design: The type of restructuring required to deal with the specific challenge, problem, or opportunity that the company faces.
2. Execution: The exact process of restructuring required to manage and the barriers to overcome to come up with the biggest possible value.
3. Marketing: The right process of market restructuring portrayed to investors so that the value created inside the company is credited to its stock price.

Top 5 ways of corporate restructuring:

1. Joint ventures

Joint ventures are enterprises owned or formed by two or more participants for special purposes for a limited duration.

Why joint ventures are formed?

• To build on and support company’s strength
• To spread costs and risks
• To improving access to financial resources
• To access new technologies and customers
• To introduce innovative managerial practices

2. Spinoffs in companies

One of the most effective ways to get rid of underperforming businesses that are dragging down profits.

Types of spinoffs:

• Split-off: A part of existing shareholders continue to receive stock in a subsidiary in exchange for parent company stock.
• Split-up: A transaction in which a company offshoots its subsidiaries to its shareholders and doesn’t exist any further.

3. Divestures

Divesture is a transaction where a firm sells a portion of its assets or a division to another company in exchange of cash or securities to a third party.

Motives of divestures:

• To shift focus or corporate strategy
• To pay off leveraged finance
• Trust issues
• Urgent need of cash
• Defend against takeover

4. Equity carve-out

It is a transaction where a parent firm offers some subsidiary shares are sold off to the general public, bringing in cash to the parent firm without losing out control.

5. Leveraged buyout

This is a transaction where a person, group of people, or organization buys a company. Leveraged buyout also includes controlling share in the stock of a company.

These 5 methods of corporate restructuring can benefit your company if you are facing big hurdles. In case you are looking for expert advice, you may get in touch with White Knight Holdings. They are available on call at (888)930-1441. Visit their website http://whiteknightholdings.com/ to know more about restructuring shareholder value for your company.

Identifying Metrics And Analytics For Maximizing Shareholder Value

In today's continually changing and this highly competitive business environment, there are management advisory service companies who believe that providing only accounting and tax services to the clients is insufficient as that would not be the only thing they will need to meet their growing needs.

You need to find ways where you will have the ability to offer management advisory services that are particularly important to new and emerging businesses. Also, you have to see if they can routinely retain these skills on a full-time basis and to larger companies seeking the most efficient as well as cost effective operating methods.

For decades, corporate sourcing officers have sought to measure the value proposition of supplier diversity and it is tagged as a distinct affair from its social contribution. Sourcing officers need to have the correct metrics and data to understand if the value of diversity is exceeding its cost. In an era when global competition and shareholder pressures are intensifying every moment, it is indispensable to not know the performance metrics.

Corporations are able to optimize shareholder value when they can monitor diversity metrics. The following supplier diversity analytics should achieve the following outcomes:

• Better data organization, data collection, and customization of diversity spend metrics

• Knowledge of commodity categories where adequate cost savings can be created by using diverse suppliers

• Strategic rationale why the corporation must involve diverse suppliers

• Measurements of the impact of diverse supplier spending on income and employment growth

• Improved ability of managers to identify and reduce risks linked with supplier diversity

• Investing in better government compliance monitoring

Being a boutique management advisory services company, White Knight Holdings is a trusted name who can provide the management team with a wide range of analysis and guidance to a client’s company ownership and senior management. Their mission is to serve as advisors to the client companies who would need the necessary experience to achieve success. Visit Whiteknightholdings.com or call 888.930.1441 to find out more about their services.

Finding Restructuring As An Option

Companies occasionally encounter financial and operational challenges that can even lead to their demise. But one of the ways to avoid a total shutdown is through a restructuring, which reduces the level and severity of financial losses.

What does it mean?

To define it simply, restructuring involves radically changing a company's organizational, financial and operating structure so that they can permanently and swiftly address serious financial and operational issues which otherwise, if not done could lead to an untimely shutdown or liquidation. With a proper restructuring, companies change contractual relationships with shareholders, debt holders and creditors, employees and other stakeholders. It essentially acts as an in-depth reorganization conducted for the primary purpose of returning a corporation to profitability and productivity.

Debt Swap

When corporations use a financial restructuring strategy, it means that they will change the company's capital structure where they may replace debt with equity. When a company swaps out its debt, it eliminates the existing shareholders. In lieu of a bankruptcy or liquidation, the debt holders take over the company's assets and the general rules state that they can claim on future earnings. It can be done in the form of newly issued shares. Debt holders may or may not accept this arrangement as the elimination of the interest and principal payments significantly strengthens the company's financial position. Typically, the shareholders receive nothing.

Debt Loading

Sometimes, a corporation may load the balance sheet with debt to finance the buy of present shareholders. This is referred to as a leveraged buyout and is a common debt loading strategy. Companies use this strategy to enable one founder to buy out the shares of his co-founders. The corporation then again purchases and retires the shares and then uses its cash flow to pay down the debt.

The WKH professional team consists of entrepreneurs and corporate executives who provides management advisory services. White Knight Holdings focuses on the opportunity rather than the industry. So, they want to help the shareholders and their businesses in many ways by advising them on investing management expertise and capital.

Visit : http://whiteknightholdings.com
Call : 888.930.1441