Businesses choose to restructure for several reasons. Common motivations include:
1. Financial Distress: Companies facing financial difficulties might restructure to avoid bankruptcy. This could involve renegotiating debt terms or selling off assets. 2. Strategic Realignment: To stay competitive, a business might need to pivot its focus, which could mean divesting non-core assets or acquiring new capabilities. 3. Market Changes: Technological advancements or shifts in consumer behavior might necessitate organizational changes. 4. Operational Efficiency: Streamlining operations to reduce costs and improve productivity often requires restructuring.