The restructuring costs can be divided into two parts. The first is the cost of conducting court proceedings and the remuneration of the restructuring advisor, which depends on the type of selected proceedings and starts at around PLN 10tys. and may even reach several hundred thousand PLN. The second is the costs of restructuring activities, which result directly from the specifics of the desired action.
Restructuring costs can vary widely depending on many factors, such as the size of the company, the scope of restructuring, the industry in which the company operates and specific goals this process.
Costs that are associated with restructuring it's usually:
- consultancy costs that result from working with consultants, financial advisers and lawyers specialising in restructuring.
- layoff costs occurring in the event of job cuts, the company then incurs costs related to severance pay, benefits for employees and others related to the termination of employment.
- operational costs resulting from the implementation of new procedures, technologies or systems.
- the costs of transferring or liquidating assets that occur when a company decides to sell or liquidate inefficient units.
- rebranding costs arising if the restructuring involves a change of brand or marketing strategy.
- financial costs occurring in the case of restructuring debt, which is associated with costs related to renegotiating the terms of loan agreements or issuing new bonds.
- all administrative costs.
Final cost calculation restructuring requires a thorough analysis of the specifics of the company and the goals it aims to achieve. Conducting restructuring is associated with short-term costs, but in the long term it brings savings and improves the efficiency of the company's operations.