In the context of a volatile global economy, maintaining outdated management models can sometimes become a barrier to growth. Corporate restructuring services emerge as an urgent solution, helping leaders make strategic shifts to not only survive but also thrive within a management structure suited to the new stage of development.
What is business restructuring service?
The concept and nature of in-depth corporate restructuring
Business restructuring services are not simply about cutting staff or changing organizational charts. Essentially, it's a comprehensive "surgery" aimed at renewing the management system, from strategic thinking and financial flows to daily operational processes. The ultimate goal is to create a healthier business entity better adapted to the harsh changes in the market.
We need to clearly distinguish between the two states of this service:
- Periodic restructuring: This is done when a business is still performing well but wants to optimize performance in preparation for further growth.
- Emergency restructuring: Implemented when a business is on the verge of crisis, losing liquidity, or experiencing a significant decline in market share.
Why do businesses need professional restructuring consultants?
Many business owners often try to implement internal changes themselves, but the results are often unsatisfactory due to psychological barriers and ingrained habits. Hiring a professional consulting firm offers the following distinct advantages:
- Providing an objective and neutral perspective helps identify "blind spots" that insiders often overlook.
- We provide internationally standardized methodologies and modern, proven effective management tools.
- Acting as a third-party intermediary, we help minimize conflicts of interest among key personnel groups during the transition process.
Target audience for business restructuring services
This service is not only for struggling companies but also serves as a strategic tool for a wide range of different groups:
- Diversified conglomerates want to divest from non-core business segments to focus resources.
- SMEs are in the process of generational transition or preparing for scale-up.
- Start-ups that have passed the Series B funding stage need to standardize their operations in order to move towards an IPO.
- State-owned enterprises undergo equitization or restructuring as directed by the management agency.
- Organizations engaged in mergers and acquisitions (M&A) need to synchronize their systems after the merger.
Legal framework related to restructuring in Vietnam
Corporate restructuring activities must be carried out within the framework of existing laws to ensure legality and protect the rights of all parties. Important legal documents include:
- Law on Enterprises 2020: Regulations on forms of division, separation, merger, acquisition, and conversion of business types.
- Bankruptcy Law 2014: Provides a legal framework for debt restructuring and business recovery under court supervision.
- Securities Law 2019: Regulations for public companies when implementing changes in ownership structure or issuing additional shares to restructure capital.
- Labor Code 2019: Regulations on the obligations of businesses towards employees when restructuring, technologically changing, or for economic reasons.
When should businesses seek restructuring services?
Identifying the right timeframe is crucial. Don't wait until your business is on the verge of collapse before seeking help. Here are some signs that you need immediate intervention:
Warning signs from your financial health.
- The negative cash flow situation has persisted for several consecutive quarters.
- Profits have fallen unusually while revenue has remained stable.
- The debt structure is unbalanced, with excessively high short-term debt creating significant liquidity pressure.
Signs of organizational inefficiency
- The cumbersome management system and overlapping departmental functions slow down decision-making.
- The employee turnover rate has increased significantly, especially among key personnel.
- The team lacks cohesion and is no longer enthusiastic about the company's strategic goals.
Common types of business restructuring services today
Depending on the current situation and objectives, corporate restructuring services will focus on one or more of the following key areas.
Financial restructuring and capital optimization
- Review, negotiate, and restructure debts to extend repayment periods or reduce interest rates.
- Establish a modern financial management reporting system that helps leaders track cash flow in real time.
Organizational restructuring and human resource management
- Redesign the organizational chart to be flatter and more streamlined to increase the speed of response.
- Standardize job description systems and implement performance metrics such as KPIs or OKRs.
Restructuring the strategy and adopting a new business model.
- Re-analyze customer segments and identify potential niche markets.
- Consulting services for transitioning to an environmentally friendly (ESG) business model to meet international standards.
Strategic benefits of implementing restructuring at the right time.
When implemented properly, corporate restructuring services bring about positive changes in both quality and quantity. According to a compilation of international management studies (Harvard Business Review), companies that proactively restructure are more likely to maintain higher profit growth rates (25% higher than those that only react when faced with a crisis).
The table below illustrates common changes that occur after a company undergoes a comprehensive restructuring:
| Target indicators | Before restructuring | After successful restructuring |
|---|---|---|
| Operating cash flow | Frequent shortages, dependence on debt. | Stable and independent working capital |
| Operating costs | High proportion, difficult to control. | Optimize and reduce waste by 15-30%. |
| Decision speed | Slow, passing through many intermediate levels. | Fast, direct, and data-driven. |
| Labor productivity | Low staff, lacking clear goals. | High, closely linked to the KPI/OKRs system. |
Note: The above figures are for illustrative purposes only and may vary depending on the scale and intensity of implementation by each business.
Reference price list for business restructuring services.
Service fees are typically broken down into phases or based on the complexity of the project. Below is a common fee structure in the market:
| Service package | Scope of work | Reference price (VND) |
|---|---|---|
| Survey & Diagnosis | Assess the financial, operational, and personnel health within 2-4 weeks. | 50,000,000 – 150,000,000 |
| Partial restructuring | Focus solely on Finance or Human Resources/Operations. | 200,000,000 – 500,000,000 |
| Comprehensive restructuring | Changes in strategy, finance, organization, and operations. | 800,000,000 – 2,000,000,000+ |
| Hourly consultation | Addressing specific bottlenecks for leaders. | 3,000,000 – 10,000,000 VND/hour |
Note: The actual fee will depend on the size of the business (revenue, number of employees) and the committed output results.
Why choose our business restructuring services?
Among numerous consulting firms, we confidently assert our position thanks to our distinctive and highly practical values.
- A team of multidisciplinary, experienced professionals: Including CFOs, lawyers, and operations specialists who have held leadership positions at major corporations.
- Data-driven consulting methodology: All recommendations are based on quantitative analysis of historical data and field surveys.
- Commitment to partnership: We provide direct support for implementation, rather than just submitting theoretical reports.
Standard expert-level restructuring service implementation process
To ensure scientific accuracy and effectiveness, we apply a rigorous four-step process:
- Step 1: Survey and diagnose the health of the business: Review records and conduct in-depth interviews with leadership.
- Step 2: Develop a plan and design a target model: Design a detailed roadmap scenario.
- Step 3: Support implementation and monitoring: Provide internal communication and staff training.
- Step 4: Evaluating effectiveness and transferring management capabilities: Transferring management technology so that the business can maintain it independently.
Frequently Asked Questions about Business Restructuring Services
Are corporate restructuring services expensive?
Should SMEs hire restructuring services or do it themselves?
How do we measure the success of a project?
Conclude
Corporate restructuring is not an admission of failure, but rather a testament to the vision and courage of leaders in innovating to adapt. Choosing a professional consulting partner not only helps businesses overcome market headwinds but also establishes a solid governance foundation for their journey to international expansion.
Remember, in business, the pace of internal change must be faster than the pace of market change. Don't hesitate to seek restructuring solutions today to protect your achievements and usher in a new chapter of growth for your company.
Contact information for MAN – Master Accountant Network
- Address: 19A, 43rd Street, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
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Content production is overseen by: Mr. Le Hoang Tuyen – Founder & CEO of MAN – Master Accountant Network, CPA Vietnam with over 30 years of experience in accounting, auditing, and financial consulting.
