Restructuring Your China Business to Outperform in the New NormalPublished: November 2020
The year 2020 challenged businesses around the world with the early breakout of the pandemic. Companies around the world will likely need to make more difficult decisions going into 2021, exploring strategies to bolster their operational sustainability, such as by restructuring their companies. In this issue of China Briefing magazine, we walk foreign investors through the different considerations when restructuring their China businesses.
The year 2020 challenged businesses around the world with the early breakout of the pandemic. Now, going into 2021 without a vaccine and news of fresh outbreaks, companies around the world will likely need to make more difficult decisions, although they will be better placed to do so, having gained crucial insights this past year. In this context, several businesses will be exploring strategies to bolster their operational sustainability, such as by restructuring their companies.
The reasons for why businesses opt for restructuring is not just to get through immediate financial pressures, but also facilitate company preparedness to take advantage of new opportunities that inevitably emerge during crises like the pandemic. This is particularly relevant given the accelerated digital transformation of the workplace and economy in China.
Having suffered through the worst of COVID-19 in the initial months of 2020, China emerged stronger and more resilient due to its successful containment of the coronavirus outbreak within its borders. This enabled a quicker than expected recovery of its economy and that in turn meant companies staying back in China or increasing their investments here. As businesses look to benefit from China’s economic growth – restructuring their operations, HR, finances, or supply chains will help their corporate strategy in many aspects. Following an effective restructuring plan, the newly structured company becomes a streamlined and economically sound business operation that is risk resilient and competitive in the market.
In this issue of China Briefing magazine, we walk foreign investors through the different considerations when restructuring their China businesses. First, we look at the general context to understand why businesses may choose to restructure their China operations, before identifying the common internal operations and external restructuring strategies. Then, we guide investors on how to manage the HR concerns that arise during restructuring. Finally, we discuss the importance of due diligence in M&A and external business restructuring.
In this Issue:
- Restructuring Your Company to Survive, Stabilize, and Succeed
- Common Restructuring Options
- HR Considerations and Management Strategies
- The Importance of Due Diligence in M&A