Reorganizing a business can make your organization more profitable and nimble and can even help a struggling company get back on its feet. Rethinking your corporate structure from the ground up can help you adapt to rapid changes in the industry and take advantage of growth. Here's a closer look at why you may want to consider business reorganization.

Why Do Companies Undergo Reorganization?

1. Consolidate Entities

Mergers and acquisitions are a great way to grow your business, but they can result in redundancies that can reduce profits. You might have two complete HR departments or R&D teams with very different workflows.

Business reorganization is often an essential step in merging with another business. In addition to eliminating redundant functions, you may also need to create systems and processes to get the most out of your expanded sales, research, or marketing capabilities.

2. Expand Into New Industries

In some cases, splitting a portion of your company off into a self-contained subsidiary can insulate you from risks and improve efficiency. For instance, you might operate an IT management firm with an opportunity to expand into software development. Setting up a separate company allows you to build management and development solutions suited to that specific field.

3. Respond to Market Changes

In today’s rapidly changing economy, businesses capable of responding to customer preferences or taking advantage of new technology are more likely to succeed. To compete in the modern marketplace, your company may need to adopt a new, more flexible management system.

The traditional vertical management style is too slow and cumbersome for many modern businesses, especially those in the tech or entertainment fields. Flat management systems empower employees to make decisions on their own and give managers more latitude in approving projects and making policy. While these systems can make your organization more flexible and creative, successfully building a seamless flat management structure requires the expertise of a business reorganization specialist.

Every business is full of tricky situations, but L7S has smooth solutions. Whether you’re acquiring a new business or looking for ways to boost cost efficiencies, their business reorganization experts provide valuable advice and creative solutions to companies throughout the Atlanta, GA, area. Reach out through their website or call (800) 823-7178 to find out whether business reorganization is right for you.