Restructuring

Restructuring (/riːˈstrʌktʃərɪŋ/) is a process in which a business or an organization changes its strategy, direction, or structure, often in response to certain issues that are causing financial harm or are not allowing the company to realize its full potential.

Etymology

The term 'restructuring' is derived from the prefix 're-', meaning 'again' or 'anew', and 'structure', which refers to the arrangement or pattern of related parts of an entity. Thus, 'restructuring' essentially means to change or alter the structure of something.

Related Terms

Corporate Restructuring: This refers to the act of reorganizing the structure of a corporation for the purpose of making it more profitable, or better organized for its present needs.
Financial Restructuring: This is a process that aims to change and reorganize a company’s financial structure. It is often associated with corporate restructuring, where changes to the entire business or organization are made.
Operational Restructuring: This involves making changes to the operational aspects of a company, such as its processes, systems, and workforce, to improve efficiency and effectiveness.
Debt Restructuring: This is a process that allows a private or public company – or a sovereign entity – facing cash flow problems and financial distress, to reduce and renegotiate its delinquent debts in order to improve or restore liquidity and rehabilitate so that it can continue its operations.