Confianz

Etiqueta: optimización empresarial

  • The ideal time to restructure a company

    Although no company is born with the need to be restructured, growth and diversification often create challenges that make it imperative to rethink the organisational structure. But when is the right time to restructure your company? Let’s look at the key signs and some practical examples.

    Why does growth drive the need for restructuring?

    As a company grows, it is common for it to diversify its business lines, broadening its portfolio beyond its core business. This diversification, while beneficial, introduces different types of risks that need to be properly managed. Manuel Urrutia of Confianz points out that growth can generate financial and operational stresses that require restructuring to be managed effectively.

    Signs indicating the need to restructure

    1. Financial risk: If different business areas have disparate payment and collection schedules or inconsistent cash flows, it is advisable to consider separating these units into different legal entities. This strategy facilitates negotiation with investors and financial institutions, allowing for more efficient management of financing needs.
    2. Labour risk: Companies with divisions that have significantly different labour requirements, such as variations in the number of employees or union obligations, may benefit from restructuring. By segmenting these units, the labour particularities of each can be managed more effectively.
    3. Commercial or operational risk: Different business units may serve different types of customers or have different profitability margins. A restructuring allows commercial and operational strategies to be tailored to the specific needs of each segment, thereby optimising the company’s overall efficiency and profitability.

    Practical cases of restructuring in Spain

    In Spain, several companies have successfully restructured to adapt. For example, Clínica Baviera, specialising in eye care, has experienced significant growth, expanding to 135 clinics in Europe and performing 180,000 interventions per year. This expansion has required a restructuring to efficiently manage its operations and maintain its focus on reliable techniques and continuing education.

    Another example is Caser, the Spanish insurer which, under the new leadership of Juan Estallo, has initiated an organisational transformation with a clear focus on the customer. This restructuring aims to create a more flexible and market-oriented organisation, strengthening key areas such as technology, human resources and strategy.

    In addition, Banco Sabadell decided to move its headquarters back to Catalonia after several years in Alicante. This strategic move, in the midst of a takeover bid by BBVA, seeks to secure the loyalty of Catalan shareholders and to take advantage of a more stable political climate in the region.

    Benefits of well-planned restructuring

    Adequate restructuring can offer multiple benefits:

    • Resource optimisation: Aligning the organisational structure with the specific needs of each business unit allows for a more efficient allocation of financial and human resources.
    • Improved risk management: By segmenting business units according to their risk profiles, it facilitates the implementation of more effective mitigation strategies.
    • Increased profitability: Tailoring operational and commercial strategies to the particularities of each segment can lead to improved profit margins.
    • Attracting investors: A clear and well-defined organisational structure can be more attractive to potential investors, facilitating access to capital for future expansion.

    It is important to stress that restructuring is not a one-off event, but a continuous process that must be aligned with the evolution and growth of the company. As our chairman, Manuel Urrutia, points out, «when you start with restructuring, you don’t stop seeing improvement actions, so it’s a virtuous circle».

     

     

    Are you considering a restructuring for your company? Our team of experts is ready to help you identify the opportunities and strategies that best suit your needs. Contact us for a personalised consultation and find out how we can boost the success and sustainability of your business.

  • How corporate restructurings have shaped 2024

    Corporate restructurings in Spain in 2024, especially spin-offs and holding companies, are booming strategies that companies are using to optimise operations and compete. Corporate restructurings, which have already grown by 15% in the first quarter of 2024. And we are not just talking about numbers, but about decisions that transform businesses, improve operations and prepare companies for what lies ahead.

    Why so many firms are turning to restructuring

    The reasons are clear and each company has its own reasons. Some of the factors driving these decisions are:

    • Accelerated digitisation: Failure to adapt means falling behind.
    • Regulatory changes: new laws require more efficient and clearer structures.
    • Competitive pressure: competing globally means optimising every resource.
    • Search for tax savings: the right structure can make a big difference to your taxes.

    What is important is that these restructurings are not just responses to problems. They are also a way of discovering opportunities and improving.

    Splits. When dividing means winning

    Sometimes a company works best when it is broken up into more manageable parts. This is what we call spin-offs, a growing trend that has increased by 22% this year. But why make this decision?

    What are splits?

    • Full demerger: a company is split up completely, with its parts forming new companies.
    • Partial spin-off: a part of the business is spun off, but the main company continues to exist.

    What are the advantages?

    • Specialisation: each part of the business focuses on what it does best.
    • Attracting investors: some areas are more attractive if presented independently.
    • Conflict resolution: Dividing may be the best way to resolve differences between partners.
    • Tax optimisation: a clearer structure usually means fewer tax complications.

    Splits are not a retreat, but a strategy to move forward with more strength.

    Holding companies: are increasingly popular structure

    Another big trend this year is holding companies, which have grown by 18%. This type of structure allows a company to control several subsidiaries, centralising management and reducing risks.

    Why do companies choose a holding company?

    • Centralisation: facilitates decision-making for business groups.
    • Equity protection: if something goes wrong in one subsidiary, it does not affect the rest of the group.
    • International growth: this structure is ideal for companies that want to expand outside Spain.
    • Tax optimisation: tax consolidation can save a lot of headaches (and money).

    New trends in corporate restructuring

    1. Commitment to sustainability

    Companies are restructuring with a more sustainable approach. By 2024, 65% of restructurings in Spain will include sustainability-related objectives. This is not just a trend, but a necessity.

    2. Digitisation does not stop

    78% of companies are investing in automation and digital transformation as part of their structural changes. Going digital is not an option, it is a must.

    3. Hybrid work as a standard

    More and more companies are incorporating flexible working models in their restructurings. Seventy per cent of companies that have restructured this year have implemented telework or hybrid working policies.

    4. Focus on what matters

    Many companies are selling assets they no longer consider essential in order to concentrate on what really generates value for them. By 2024, 55% of restructurings have included the sale of non-strategic business units.

    Restructuring is not a decision to be taken lightly. They involve legal, tax and labour changes that, if not handled well, can be costly. This is where the support of an expert team comes in.

    At Confianz, we accompany our clients and design tailor-made solutions, adapted to the needs of each client.