Business at а Faster Speed

In times of dynamic change and accelerated technological development, businesses must keep up with this pace. A short lag behind quickly becomes a big one and such a company begins to feel that if it doesn't take the right steps, it may disappear from the market. What can you do? The first most logical step is the restructuring of the enterprise. Velinov & Partners Consulting House could be your partner in this tough process.

The Beginning

This is how it all started: “During the 2009 and 2010 crisis, the economic environment sharply changed and many people from the business weren't prepared for that. It was a common practice for companies to take large loans, encouraged by the economic upsurge in the pre-crisis years. Businesses began to accumulate losses, and some staff and material assets turned out redundant. This is where we intervened – we tried to pull out from the stupor the managers who didn't realize that everything was irreversibly changed and to quickly restructure their business before they went bankrupt. We went through mass firings and closures, bankruptcy and debt renegotiations. Those who responded quickly and appropriately suffered less damages.”

Where to

Even today, many companies are not looking at the future with a vision; they don't think about a pessimistic scenario, about buffers and reserves. Therefore, help in strategic planning and business development is more than relevant. There are many reasons that may lead to the need of restructuring an enterprise. The most common ones for seeking this extreme approach are related to the introduction of a new generation of machinery and equipment. This necessitates a change in the work approach and is also related to the optimisation of the number of staff, but an economically and legally justified restructuring strategy is needed, Velinov and Partners Consulting House believe.

Risks

In every good endeavour, there are underwater stones and the first risk is not to do the job professionally. In order to minimise the risk, the experts from Velinov & Partners Consulting House are to develop a plan for the future steps and together with the management carefully weigh all the pros and cons before proceeding to the practical implementation of the project. With such an approach, the side benefit is that a number of other problems accumulated over time are solved; even the order of the company's documentation is set.

Legal Assistance

“Legal assistance is mandatory since documents are always necessary and complicated administrative procedures have to be used. And the sooner we intervene, the easier the process is,” lawyer Asen Velinov assures. And Svetoslav Gerdzhikov explains that economic logic is the most important at restructuring, but it goes hand in hand with the legal construction of the case, and without it desired result can't be achieved. In some cases, mass firings have been used, and this is a complex and specific procedure whose practical realisation is quite difficult. But the Consulting House already has enough experience with a variety of cases, which have arisen in the restructuring of enterprises. Velinov and Gerdzhikov are senior partners in the Consulting House, both of them being high-esteemed lawyers.

Difficulties for the Owners

The most common obstacle to restructuring are the sentiments of the owners about one or another part of the enterprise. They don't have an impartial rational view of the activity and react emotionally. That is why the experts from Velinov and Partners Consulting House admit that sometimes it is very difficult to convince the owners in the necessity of one measure or another. In certain cases, they are ready to apply some of the measures, and in other, they insist on avoiding them. But only applying the measures in their entirety could lead to a successful outcome. It takes time and practical results to give confidence to the leadership that the painful reorganization is worth it. First, however, a decision for a change is needed.

Can We Do It Alone

The size of the company is irrelevant when it comes to optimising processes, work or opportunities for increasing the capacity of an enterprise. It is important to realise that any significant change in the volume of a company activity should be accompanied by some restructuring. The management of an enterprise could make the changes on their own, but they would miss the relentless view from outside the company, unburdened by solving the current problems. In each activity and at every step along the way of realising a restructuring project, you may encounter traps. Preventing or avoiding them depends both on good theoretical knowledge and on the experience and skills of the person who leads you into this change. If you put your trust in the right consultant, you will have a reliable support in this process, and together you will monitor the financial effect of the measures taken.

The Results

As a whole, in order to achieve good results, it is necessary to constantly fine-tune the processes in a company and to analyse where there is unused potential, and also to limit the dead-end and loss-making activities. It is not a good policy to wait for more significant changes, in order to take restructuring measures, which is not a process that ends in a month, Velinov and Partners Consulting House warns. There are many subtleties without which a change can turn into a restructuring only for the sake of the restructuring, instead of achieving optimisation of processes and a higher financial result. But the most important thing to bear in mind is that a successful restructuring is the one that has started. And with the right people, in the right way.