Covid 19 brought many companies on the edge whether they could either survive or fall. Enterprises took various measures to stay afloat, but the pandemic was unprecedented, so the path for a solution became even more difficult for them. They had to bear the burden of the piled up debts, and creditors’ accounts on the balance sheets rose to unimaginable numbers.
The debts called for an immediate but strategic action plan, especially for big enterprises. The choice ahead was and is still clear for many as they manage their survival- Restructuring.
So what is precisely restructuring?
How do you know if your company requires it?
Is there a way to tackle this effectively and efficiently?
Well, this blog answers all these questions.
Restructuring involves amendments in various aspects of a business, I.e. financial, operational, legal etc., when it faces financial distress. The pandemic and ten stiff market competition led the companies to bankrupt. To regain the stability again, it was through the restructuring process.
Many companies, this year, already have or are about to undergo this process. Around 3400 out of 3500 small and medium enterprises were given a green sign by CRISIL in May for RBI latest restructuring window. In the early part of 2020, Disney announced a $5 billion charge for their Restructuring. Cisco, the technology giant, declared a $900 million charge for its Restructuring along with severe layoffs. Companies like Pfizer, Deutsche Bank and many more found them sailing in the same boat.With the pandemic’s aftermath still being faced by the corporate world, some sectors were affected the most.
The pandemic led lockdown led to a massive loss in the transportation sector. With the benefits of virtual data rooms and meetings, the businesses are now more inclined to them, rather than bearing the heavy transportation expenses of their employees for the same. Many transportation companies got debt-ridden to survive, with the hope of ease in travel restrictions soon.
As much as the sector had scope to thrive in the market, it also had chances to drown, especially in small and regional health care systems. The early phase of the pandemic witnessed many of them being caught in the vicious cycle of bankruptcy. Virtual appointments and delays in non-urgent surgeries were some of the reasons that led the sector to this situation. Many of the healthcare sectors consequently relied on restructurings as their last resort.
Restaurants and Hospitality
2020 was a challenging year for restaurants and hotels due to travel restrictions and lockdowns. This forced them to shut down without giving them a second chance to survive in the market. The service providers knew that it could not last long if immediate action were not taken and thus turned to strategic Restructuring.
When do you NEED Restructuring?
• Reduced Sales
Sales are what keeps the company steady. Thus, a decline in sales is a warning signal. It might also lead to grave financial distress if not taken seriously. Restructuring the company can improve its performance. However, the fast pace of the world requires the companies to do the process faster. Cloud computing has been one of the major players in making this possible.
• Increased debt-dependency
Debt is a liability of a company in terms of repayment and reduces its profit margin, thus affecting the revenue. An increase in debt with no significant change in income is a sign that the company requires Restructuring in its financial and marketing aspects. The data storage of all these areas can be easily accessed and stored with cloud computing and virtual data rooms, making the process much easier.
Often, the companies tend to be doing sales and debt management, but what leads them to bankruptcy is the improper system of receiving payments and a significant credit period to their clients. This may lead to a cash flow crisis. The documents related to all the creditors and delayed payments can be stored safely with controlled access on the cloud. Companies like Dcirrus ensure the confidentiality of information while providing quality services.
So, Is there any way to tackle this?
Yes, cloud computing is one of the best possible solutions to this.
Can we do this efficiently?
Well, with Dcirrus, Yes!
The lockdowns made the crucial files and documents inaccessible for many. This further facilitated the sudden shift to the technological world. Cloud Computing was a safe play for the enterprises that helped in continuing their operations and made the documentation easier, by miles. Cloud and Virtual Data Rooms not only managed the documents but also solved the problem of ensuring confidentiality. Companies like Dcirrus helped many organizations set up their VDR in the simplest way possible, for the pandemic had caused enough trouble.
The process of Restructuring often seems complex because of the due diligence it includes.
However, with a Virtual Data Room, user-friendly interface, and proper management and storage of files, the process will no longer be a stress for the stakeholders.
Benefits Of VDR:
• Security of Data
•Easy Set-Up – No waste of time
•Smart Search option
• Indexing of Data
Why Dcirrus 🔥?
Dcirrus virtual data room has been a saviour for many companies, especially during the pandemic, by providing them standard cloud services and virtual data rooms to fasten their transition to the technical and technological side. Virtual Data Rooms are cost-effective and inevitable for businesses to sustain themselves and give themselves a competitive edge over their competitors. The use of the cloud is necessary due to pandemics and because of the cut-throat competition. The transition was specific but covid only acted as a catalyst in the process. The advantages that one can acquire by choosing Dcirrus are:
•24*7 customer service
At Dcirrus, we believe that customer satisfaction is the most important. We also understand that the dilemma of switching to technology raises many doubts among the clients. Thus our team is always available to solve them and help you out with the process whenever needed.That why We our consider to be a Best Virtual Data Room provider 👏.
Security of data is as important to us as it is to our clients. With 256-bit encryption and multi-level authentication, we ensure that the security of information is never compromised
Dcirrus’ VDR offer accessibility to data from anywhere at any time. It also offers intelligent search options, file indexing, auto sync and backup of files for smooth operations. The authority of granting permission to ‘who can access what’ also lies with the client so that they have control over their data.
Setting up the Virtual Data Room with Dcirrus is very easy and at a nominal price. Our pay as you need’ policy results in optimum utilization of the resources with our clients. This ensures better profit margins and, eventually, a better growth rate.
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