Reorganization or restructuring of a company is a common occurrence. There are a number of benefits of reorganization. Decision makers must review the benefits of reorganization to determine if this is the best option for your company at this time. An experienced commercial attorney will help you to determine when reorganization is useful and assist with the process to ensure a successful outcome.
When your company management philosophy has changed, the current structure of the organization may not work with it. A better way to accomplish things may be necessary, especially if the current organization is outdated. Your company needs to be a reflection of its management and may need to change to continue to be competitive in the marketplace.
Mergers and Acquisitions
When a company merges with another one or acquires another company, it is necessary to review and revise the entire organization. Combining two companies together requires a complete overhaul and this may necessitate reorganization. A new company cannot thrive and grow if you simply try to stuff one business into the other without making changes.
Some business structures may be more beneficial for companies at different times. As a company grows or changes, it may be more advantageous to make changes to the structure in order to get the best tax benefits available. A tax professional or attorney is helpful in reviewing your situation and recommending when reorganization may be necessary.
When companies need to streamline or downsize, they need to reevaluate their structure. Reorganization may be required in order to revise and improve the company in light of the smaller size. Management teams, job descriptions, and reporting structures will be different, and require a new overall plan.
From time to time, companies may need to restructure in order to continue to comply with the necessary government requirements or laws. It is important to stay up-to-date on the current laws and those that will take effect in the future, so that you have time to react and respond if reorganization is needed.
Reorganization may seem like a daunting undertaking, yet it is something that can actually improve your business and keep it successful. If you are considering reorganizing your company, talk to a qualified attorney to discuss your options and whether there are any benefits for your company before you being the process. Your attorney will give you support and guidance to make the procedure as uncomplicated as possible.
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Benefits of Reorganization, or any other litigation matter, please feel free to contact Stockton D. Banfield at 480.461.5356, log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.