Company Restructuring — Strategy and Concrete Steps 2025

When it is time for restructuring — warning signs

Restructuring is not a sign of failure but a strategic adaptation tool. However, many companies postpone the decision until the situation becomes critical. Warning signs include: declining profitability for more than 2 consecutive quarters, market share loss, recurring cash-flow difficulties, oversized organizational structure, and unresolved internal conflicts.

Under Law no. 85/2014 on insolvency prevention procedures, companies in difficulty have access to the preventive concordat and the ad-hoc mandate — legal instruments that allow restructuring before formal insolvency. Early management consulting can save the company.

Types of restructuring: financial, operational, organizational

Financial restructuring targets capital structure optimization: renegotiating loans, debt-to-equity conversions, selling non-productive assets, and attracting new investors. The objective is restoring financial balance and reducing the cost of capital.

Operational restructuring focuses on business processes: eliminating unprofitable activities, automating repetitive processes, outsourcing non-core functions (accounting, IT, HR), and optimizing the supply chain. Organizational restructuring rearranges the hierarchical structure, redefines roles and responsibilities, and may include staff reductions in compliance with the Labour Code.

The restructuring plan — step by step

1. Complete diagnosis: financial, operational, and organizational analysis (2-4 weeks)
2. Define SMART objectives: reduce costs by X%, increase profitability by Y%
3. Identify concrete measures: what to cut, optimize, and invest in
4. Implementation plan with timeline, responsibilities, and KPIs
5. Transparent internal communication — employees must understand why and how
6. Phased execution with weekly progress monitoring
7. Post-implementation evaluation at 3, 6, and 12 months

A well-designed restructuring plan includes an implementation budget, risk analysis, and alternative scenarios (optimistic, realistic, pessimistic). The external consultant brings the necessary objectivity — internal management is often too close to the problems to see the solutions.

Legal aspects — Labour Code, preventive insolvency

Collective dismissal (art. 68-74 of the Labour Code, L53/2003) requires: consulting the trade union or employee representatives at least 20 days in advance, notifying the labour inspectorate and employment agency, respecting objective selection criteria, and paying compensations stipulated in the collective labour agreement.

If restructuring is linked to major financial difficulties, the preventive concordat (L85/2014) allows negotiation with creditors without formally entering insolvency. The condition: the debtor must not already be insolvent. This procedure protects the company from forced execution during negotiations (maximum 4 months).

The role of the external consultant — objectivity and expertise

The external consultant brings three essential things: an objective perspective unaffected by internal politics, experience from similar restructurings, and credibility with creditors and business partners. The Geseidl team combines management, accounting, and tax expertise to deliver integrated restructuring solutions.

With over 22 years of experience and ISO 9001:2015 certification from TÜV Rheinland, Geseidl has assisted dozens of companies from Ploiești and throughout the country in successful restructuring processes. Our approach is pragmatic: rapid diagnosis, clear plan, disciplined execution.

Need management and restructuring consulting? The Geseidl Consulting Group team, CECCAR Prahova leader for 18 consecutive years, is ready to help. Discover our services or contact us for a free consultation.