Youssef Kabbaj Goldman Sachs former strategist can help you in corporate restructuring for profitable enterprise Corporate restructuring is done by a business in financial jeopardy to modify and reorganize its capital structure and operations to enhance its performance and have a more profitable enterprise. The need for corporate restricting may arise for various reasons such as:
Mergers & acquisitions Takeover Adverse economic conditions Major change in the business Repositioning Buyout Change in strategy Change in leadership and ownership structure Reverse synergy Cash flow requirements, and Bankruptcy
Types of corporate restructuring Corporate restructuring can either be: Financial restructuring or Organizational restricting Financial restructuring: This is done when there is severe fall in the overall sales because of adverse economic conditions. The company may decide to alter its debt-servicing schedule, equity pattern or cross-holding pattern.
Organizational restructuring: In this restructuring, change in the organization structure of the company is done, such as reducing its level of hierarchy and changing the reporting relationships. This is done to cut down the costs to pay off the outstanding debts for the continuance of business operations. Corporate restructuring may involve one or more of the below methods to divert assets: Divestitures The company sells, spins off or liquidates its division. It may involve direct sale of the division to an outside buyer. The control of division is transferred to the buyer while the selling company is compensated in cash for the divestitures. Spin-offs A new company which is distinct from the original one is created. There is no public offering of the shares as such; instead they are distributed among the existing shareholders of the company in a proportionate way. This way, the company retains its shareholder base but the operations and management are made separate. Equity carve outs An independent company is created by diluting its equity interest and selling them to the outside shareholders. Shares of the new subsidiary are issued in a general public offering and the new subsidiary becomes a different legal entity. Liquidation It occurs when a company is unable to pay its overdue. Liquidation is linked to bankruptcy. The company is broken apart and the all assets are sold and divided between the shareholders and creditors as per the priority of their claims. The company closes its all operations. Due diligence in corporate restructuring
The distressed company’s management hires financial and legal experts to advice in the negotiations for corporate restructuring. Youssef Kabbaj Goldman Sachs former head of strategic coverage is expert in corporate restructuring who takes due diligence in reviewing all financial records before entering into an agreement for corporate restructuring. Youssef Kabbaj Goldman Sachs former strategist is currently serving at the boutique merchant bank the Whitestones Partners, which is uniquely positioned to assist global investors in finding valuable investment opportunities in a range of alternative finance solutions including special situations, emerging markets and assets management in the periods of financial instability. If you are in need of corporate restructuring or looking for alternative investment opportunities in hedge funds, principal investments and other options, Youssef Kabbaj Goldman Sachs former strategist can help you with his insightful analysis of the market dynamics and investment opportunities. Get in touch with Youssef Kabbaj Goldman Sachs former strategic coverage head at the Whitestones Partners for more details.
Visit: youssefkabbaj.info aboutyoussefkabbaj.com