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Restructuring is renovating

Written by Miguel Van Damme

A broken roof, many redundancies, changes in regulations or your personal taste, or the need for more space? There are many possible reasons why your house is not living up to your needs or expectations to ensure a carefree future. That’s when a renovation can be considered as the next logical step. Renovating your house will not only deal with existing issues but will also allow you to make improvements in the long term. You can fix the broken roof to prevent even more damage, install solar panels to cut future spending on energy bills, and place extra windows to have more natural light. So why are we talking to you about renovating a house?

Just like a house, your business is also subject to external pressures, plagued by redundancies and inefficiencies, and on the mercy of changes in legislation and consumer behavior, etc. Basically, restructuring your business is like renovating your house.

The benefits of a well-performed restructuring exercise are immense. It cuts future costs, installs efficiency, uncovers underutilized assets and uses the proceeds to invest in promising opportunities.

As COVID-19 pulled the global economy into crisis mode in a matter of weeks, companies are being shaken awake by the red flags that have been looming for already some time. These red flags could be classified into three main categories:

  1. Somber forecasts (e.g. cashflow problems, declining profits, worsening financial ratios, etc.)

  2. Important changes (e.g. markets, regulatory system, consumer behaviour, etc.)

  3. Inefficiencies or missing potential (e.g. underutilized assets, difficult communication, negligence of data, etc.)

When strategic problems get worse, leading to liquidity problems and potentially even solvency problems, the room to maneuver tightens. Early involvement and a solid approach are key to a successful restructuring.

As with any renovation project, most people will need help. BrightWolves is your restructuring architect.

Our approach towards restructuring consists of three phases: situation assessment, planning, and implementation.

For more information, let’s have a chat! Reach us through:


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