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What are the benefits for the entrepreneur of entering into a simplified company restructuring process and why entrepreneurs fear it

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Dozens of restructuring proceedings conducted, hours of deliberations with entrepreneurs.

1. Maintain control of the financial situation:

Simplified restructuring allows the company to deal with its financial problems in a professional and courageous manner and maintain control of the situation. We stop 'burying our head in the sand';

2. avoiding bankruptcy:

Effective restructuring is the solutionto avoid formal bankruptcy of the company, which in turn minimizes the negative consequences for the company's owners, employees, contractors and shareholders;

3. Negotiations with creditors:

The restructuring process enables negotiations with creditors to find sustainable solutions, such as reducing debt and restructuring repayment terms;

4. Preserving shareholder value:

Avoiding formal bankruptcy allows us to preserve value for shareholders, which shows that we are able to face the problem. Crisis management requires a broader perspective and bold decisions from boards/owners/representatives;

5. Protection of workplaces:

Simplified restructuring affects the cost structure, which helps to preserve jobs by reducing operating costs and improving efficiency.

6. Acceleration of the restructuring process:

Simplification of the process allows for quicker action, which is important in the case of companies in crisis. Although we are talking about simplified restructuring remember that we use the common name of the procedure for approval of the arrangement. It is a quick process that allows for the unblocking of the situation crisis and then we regain time to move the company out on the right path.

7. Rebuilding trust of stakeholders/customers/contractors

Effective restructuring can help rebuild trust among stakeholders, including customers, suppliers and investors. Clear, efficient communication, presentation of crisis areas and upcoming changes in the existing business, presentation of repayment options to satisfy creditors while achieving the purpose of the restructuring procedure, which is to avoid bankruptcy of the company it is a message that builds trust and opens the way to further cooperation in the future.

8. Cost structure adjustment:

Focus on eliminating excessive costs and adjusting the structure costs to the actual financial capabilities of the company.

9. Minimizing loss of brand value:

Avoiding formal bankruptcy and effective restructuring can help minimize the negative impact on brand value. Companies.

10. Opening the door to further cooperation: and development

Effective management of the restructuring process can open the door to further collaboration with suppliers, business partners and customers.

11. Finally reaching the GOAL RESTRUCTURING – BACK TO EFFICIENT COMPETITION ON THE MARKET

Experience shows. How important it is to act in crisis situations. So why are Entrepreneurs afraid of simplified restructuring?

1. lack of control: The restructuring process requires some changes. Entrepreneurs may fear losing control over their company and introducing new rules and processes. NOTHING COULD BE FURTHER WRONG - it is the entrepreneur who continues to manage his company;

2. uncertainty: Simplified restructuring may lead to a certain degree of uncertainty as to the effects of these changes on the future of the company. This may cause fears and resistance. Here, analysis and good restructuring advice will suffice, which will allow understanding the process;

3 Cost and time: Restructuring process may be expensive and time-consuming, which may discourage entrepreneurs. The costs of simplified restructuring are the lowest among all other costs related to company protection, property and are defined by law;

4 Staff reactions: Simplified restructuring may cause resistance among employees, and entrepreneurs fear losing the team's motivation and commitment.

Here, effective communication with a restructuring advisor and mediator is important, as they will convey that only by implementing restructuring will we achieve stability and have a chance for development. Companies and maintaining jobs;

5. risk of change: Every change in the organization carries some risks. Entrepreneurs may fear that simplified restructuring will not bring the expected benefits or are not fully aware of the process. Here, it is important to choose an experienced restructuring law firm that will guide the entrepreneur step by step through previously unknown areas;

It is worth noting that simplified restructuring in a crisis situation is essential to keep the company on the market, avoiding bankruptcy and ultimately improving the efficiency and competitiveness of the company, which is why it is important to properly prepare and plan this process.

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Małgorzata Anisimowicz

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