RESTRUCTURING CASE

RESTRUCTURING PRACTICE

Your metalwork company has grown that much that other companies are taking an eye on you.

After rejecting six buying offers, you have decided to sell all your shares for a very large economic offer, to a very nice company that will keep the culture you implemented in yours.

Therefore you are happy because you think that your employees will also feel happy to be part of a now project, into a new bigger structure that will assure them a better future.

You have also signed for you a very profitable two years CEO contract in order to assure to the buyer the best possible transfer.

You thought everything were going to be smooth, but you didn’t pay attention that a company merge normally carries a restructuring to avoid duplicate positions. Therefore, the board of directors has told you to reduce a 60% of the total salary costs.

1. You want to do as few harm as possible. How would you do that? Wich measures would you implement?
2. You want to spend the minimum budged in the restructuring: make plan A (saving money on the actual operation) and plan B (saving money long term) and calculate both.
3. Write the shield clause you have achieved with the new company so that the company don't fire you.

Resonate why you take decisions.

Buyer

Sold company