Corporate Restructuring Explained :
Challenges, Methods, and Key Levers
Definition and keychallenges of corporate restructuring
In an uncertain economic environment, restructuring has become a major strategic lever to preserve a company’s viability and competitiveness. It is not merely about reacting to a crisis, but about fundamentally rethinking financial, operational and human balances in order to define a new, sustainable direction.
Why restructure?
Restructuring can take place at different levels: organisation, financial structure, business scope, governance or social management. Its purpose is to correct imbalances, restore profitability and give the company the means to move forward with clarity and agility.
Our role
We approach each restructuring with a strong conviction: beyond constraints, there are always levers for transformation. Our role is to help leaders identify them, activate them at the right pace, and engage the entire organisation in a solid and realistic recovery trajectory.
Warning signs not to be ignored
The most effective restructurings are those undertaken before a crisis unfolds. Key signals to monitor include:
Persistent decline in profitability
Increase in working capital requirements (WCR)
Excessive dependence on a single client or market
Excessive dependence on a single client or market
Delays in digital transformation
Strategic misalignment between subsidiaries or teams
Anticipating these imbalances helps preserve room for manoeuvre, avoid rushed decisions and maintain control over timing. It is better to rebuild early than to repair too late.
Types of possible restructurings
There are several forms of restructuring, which can be combined depending on the company’s needs:
Financial restructuring :
Debt rescheduling, conversion of debt into equity, disposal of non-core assets.
Operational restructuring :
Process rationalisation, working capital optimisation, outsourcing or refocusing on core activities.
Legal restructuring :
Merger, demerger, spin-off, change of legal structure.
Social restructuring :
Voluntary departure plans, workforce redeployment, skills adaptation.
The CMPO Consulting approach :
co-creating a tailored restructuring
Each engagement is based on a structured yet flexible approach, combining rapid analysis, co-creation and rigorous execution.
Our methodology is built around 6 key stages :
1. Rapid diagnostic
Quick assessment of financial balances, cash flows and governance.
2. Roles and responsibilities
Clarification of individual scopes, team alignment and maximisation of individual potential in support of collective performance.
3. Scenario modelling
Prioritisation of action levers, risk identification and modelling of social impacts.
4. Construction du plan de retournement
Prioritisation of action levers, risk identification and modelling of social impacts.
5. Négociation avec les parties prenantes
Banks, shareholders, creditors and employee representative bodies.
6. Pilotage de l’exécution
Project committees, performance indicators and continuous adjustment.
Our distinctive approach lies in working closely with executives and managers to ensure full alignment and strong commitment to the plan.
Preventive restructuring vs. court-led restructuring: which path to choose ?
There are two main restructuring approaches: preventive and court-led.
It is essential to distinguish between preventive restructuring mechanisms (ad hoc mandate, conciliation) and judicial proceedings (safeguard, court-supervised reorganisation).
The preventive route
Preventive mechanisms allow companies to preserve confidentiality, negotiate freely with creditors and anticipate tensions at an early stage. They should be favoured as soon as warning signs emerge.
They help protect the company’s image and offer greater flexibility in negotiating and implementing agreements.
The court-led route
Judicial proceedings, while more restrictive, provide a protective legal framework to freeze debts, suspend enforcement actions and enable deeper reorganisation. They become necessary when imbalances are too advanced to allow for an amicable agreement.
Whenever possible, we always favour a preventive approach, in order to preserve the company’s reputation and allow executives to retain control over timing and decision-making.
Steering, reporting and crisis committee: ensuring execution
In a restructuring context, responsiveness and clarity in governance are critical. We put in place a dedicated framework including:
Weekly dashboards
Financial, HR and legal situation updates
Meetings with creditors and employee representative bodies
This framework strengthens decision-making consistency, secures execution and facilitates dialogue with external stakeholders. The objective is to restore a clear direction, identify gaps and adjust trajectories on an ongoing basis.
The creation of a small, focused crisis committee (often CEO, CFO, advisor and HR) is a best practice to ensure smooth and effective decision-making during this sensitive period.
Restructuring and human impact :
supporting change
Too often, the human factor is treated as secondary. Yet team engagement, message clarity and social climate largely determine the success of any transformation.
We systematically integrate HR support by :
01
Assessing the social climate before any announcement
03
Créer un plan de communication
interne cohérent
02
Involving frontline managers in communication efforts
04
Providing individual or collective support
(outplacement, training, coaching, etc.)
This approach helps prevent breakdowns, reduce resistance and foster a constructive dynamic throughout the transformation.
Restructuring while keeping sector realities in focus
The most effective restructurings are those carried out before a crisis occurs. Among the warning signs to watch for :
FASHION
In fashion, the challenge is often to restore balance between creative agility, short collection cycles and financial robustness. This typically involves range rationalisation, accelerated digitalisation of distribution channels and a repositioning of the offering.
jewellery
In the luxury and jewellery sector, the priority is to preserve brand image and perceived value while strengthening operational efficiency. Our interventions focus in particular on the supply chain, product range structure, budget trade-offs and distribution models.
Gastronomy
Finally, in the restaurant industry, whether fine dining, contract catering or multi-site networks, margins are under pressure, costs are volatile and recruitment is challenging. Restructuring aims to rationalise sourcing, automate certain functions, optimise fixed costs and clarify the customer experience.
hospitality
In hospitality, strong seasonality, high fixed costs and dependence on specific channels require increased flexibility. Restructuring may involve renegotiating leases, reorganising human resources or rethinking the service offering.
The role of investors and funds in a restructuring
In certain situations, a restructuring cannot be completed without the entry of new financial partners into the company’s capital. The role of investors is then strategic on several levels :
Equity injection to stabilise the balance sheet
Strengthening governance through experienced board members
Leverage in bank negotiations
Acceleration of transformation driven by performance expectations
We support executives in their discussions with turnaround funds, growth equity investors and family offices. The objective is to ensure long-term alignment of interests and to put in place governance structures suited to future challenges.
Avoiding the classic pitfalls of a poorly managed restructuring
Several traps can jeopardise the success of a restructuring. Even when well prepared, a restructuring can fail if certain risks are not anticipated :
01
Poorly managed timing :
Starting too late or rushing certain phases exposes the company to internal pushback or loss of stakeholder confidence.
02
Underestimating internal resistance :
Restructuring is above all a human journey. Without proper support, obstacles can paralyze execution.
03
Lack of prioritisation :
Trying to transform everything at once dilutes efforts and significantly increases the risk of failure.
04
Opaque communication :
Uncertainty fuels fear. Clear, transparent and phased internal communication is essential.
We ensure a clear framework is established from the outset, build a truthful and coherent narrative, and actively involve teams in a co-creation dynamic.
Expert Quotes :
Restructuring as Seen by Practitioners
Restructuring FAQ
What is corporate restructuring?
It is a set of measures designed to adapt a company’s organisation, financial structure or activities to a new economic reality. It may aim to ensure short-term survival or to optimise performance in the medium term.
When should restructuring be considered?
As soon as early warning signs appear: cash flow pressure, loss of key customers, margin erosion, high debt levels, etc. The earlier it is anticipated, the more effective it is.
Does restructuring always involve layoffs?
No. Some restructuring plans focus solely on financial or legal aspects. Social measures are an option, not an obligation.
How long does a restructuring take?
Between three months and one year, depending on the scope of the project. A short preventive plan can be implemented quickly. A full transformation, including reorganisation and HR support, may take 12 to 18 months.
What is the difference between court-supervised reorganisation and liquidation?
Court-supervised reorganisation aims to save the company by continuing operations. Liquidation ends the activity, with assets sold to repay debts.
Why work with a firm like CMPO Consulting?
To benefit from an objective perspective, a structured framework and support in negotiations with stakeholders. A consulting firm brings methods, tools and experience that are difficult to mobilise alone during critical periods.
They trust us
