financial restructuring

financial restructuring is a valuable solution to help your business eliminate financial problems & enhance business liquidity. Financial restructuring is a mode of restructuring a firm/company that has gone into financial distress and which has huge accumulated losses, overvalued or fictitious assets and negligible or negative net worth. As a corrective measure, such firms may sell major assets, merge with other firms, negotiate with creditors, banks, debentures-holders and shareholders to reduce their claims, swap debt-equity, leverage buy-out, etc.

In the case of mergers and acquisitions the firm has to deal with the shareholders of the other firms. But, in-case of financial restructuring, it has to deal primarily with its own stakeholders. Financial restructuring can however be adopted by only those firms which are in financial distress at present but hold a prospect for better performance after the restructuring process is completed.

Corporate financial restructuring is any substantial change in a company’s financial structure, or ownership or control, or business portfolio, designed to enhance the value of a company/firm.  Whenever a company’s valuation is reviewed with the intention to assess its value, one needs to reorganize its financial assets in order to create the most financially beneficial environment for the company.

Financial difficulty can build up in a company which reaches an irreversible state when it is almost too late. Over time, these issues have the ability to accumulate and grow, until the company faces a deep crisis. In such cases, finding the underlying causes can be a time-consuming and difficult process, often requiring the help of an outside company. Not addressing certain problems upfront, or simply hoping that they will fix themselves, is the best way to see a company crumble from within. On the other hand, when tough decisions need to be made, there is often a fear of making the wrong move.

CFM Asset Reconstruction Private Limited (CFMARC) is a company that specializes in evaluation, acquiring and resolution of stressed assets and distressed companies.

It specializes in financial restructuring for businesses facing such situations. As an outside third party, it has the ability to properly assess a business’ needs and prescribe the proper remedy.

In the case of excessive debt, CFMARC negotiates directly with creditors and vendors to create repayment plans that are acceptable to both parties. It also helps create a business plan that details the financial direction of the company and the steps needed to achieve success.

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