Restructuring your business helps maintain efficiency

Businesses and companies build up over time from an original idea and grow into what can turn out to be a group of businesses that can be difficult to manage and may all be going in different directions.

It may be that some of the divisions make money whilst others are loss making but the losses may be hidden by accounting for the group as one entity or the wrong allocation of costs for historic reasons.

Managers of the various divisions may be creating internal conflict as they try to safeguard their division.

It may be that purchasers are willing to buy one division and not others.

Tax or retirement planning may also be a consideration in looking at splitting up a group or assets may be placed into one entity whilst trade may in others to reduce the risk to the owners.

As most small businesses or companies are controlled by families, restructuring may also help balance those interests.

Splitting the divisions or group will highlight the specific performance and will aid decision making.

As we are not connected to the business emotionally, we are able to look at the various parts of the business dispassionately and provide the best advice on the way forward working closely with the owners to achieve their goals.

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