Managing a corporate restructuring process means navigating a complex and delicate transformation that demands swift and coordinated decisions.
It is not just about fixing financial imbalances, but about reshaping the company’s entire structure to restore profitability and long-term sustainability.
This article explains what corporate restructuring is, the main areas it involves, the risks of poor planning, and why legal support can make the difference between failure and a successful turnaround.
What Is Corporate Restructuring
Corporate restructuring is a coordinated set of actions defined within an industrial and financial plan, aimed at stopping the deterioration of business performance and repositioning the company in the market.
Typical measures include changes to:
- Governance and organisational structure
- Capital management and cost control
- Production processes and corporate structure
The Four Main Areas of Restructuring
An effective restructuring strategy acts systemically on several levels:
- Strategic – revising the company’s competitive positioning
- Operational – improving efficiency and resource optimisation
- Financial – debt restructuring, recapitalisation, cash flow management
- Corporate – mergers, demergers, transfer of business units, or changes in ownership
The Risks of Poorly Managed Restructuring
Launching a restructuring plan without proper legal and strategic support can expose both the company and its directors to serious risks, including:
- Civil and criminal liability of directors, if legal obligations are breached or if action is taken too late
- Litigation with creditors, employees and shareholders, due to poorly planned or communicated measures
- Loss of business continuity, if actions compromise the company’s operational capacity
- Reputational damage among stakeholders, banks and the market, limiting access to new financing
- Invalid or ineffective extraordinary transactions, if they do not comply with corporate, insolvency or tax regulations
Understanding and anticipating these risks is essential to preserve corporate value and protect company directors.
The Advantage of Early Legal Involvement
The early involvement of a legal team is a critical success factor.
Engaging legal advisors from the outset allows companies to:
- build a solid legal framework
- identify less invasive and more effective tools
- develop coordinated defensive strategies
Close collaboration between legal advisors, financial consultants, tax experts and labour advisors ensures a multidisciplinary and synergistic approach, aligning business goals with legally compliant solutions.
SCAI Legal: Your Legal Partner for Business Recovery
Corporate restructuring is not just a challenge — it is an opportunity for growth and recovery.
Relying on an experienced legal team from the very beginning means navigating regulatory complexity and safeguarding business continuity. SCAI Legal has years of experience in cross border restructuring: contact us for a personalised consultation.
Author: Stefania Caltabiano, SCAI legal, stefania.caltabiano@scai.legal
