Developing a strong restructuring plan is essential for turning around a struggling business or preparing for future growth. In Australia, directors have access to formal and informal tools that can support a restructure, but the success lies in clear planning.

Key Components of a Restructuring Plan

1. Diagnosis – Understand the real issues. Is it cost structure, leadership, debt, or market fit?

2. Objective Setting – Define what success looks like: profitability, market share, debt reduction.

3. Stakeholder Engagement – Creditors, staff, and investors need to be part of the conversation.

4. Action Plan – Detail steps such as downsizing, asset sales, refinancing, or changes in operations.

5. Timelines and Milestones – Set deadlines and track progress.

Formal Options to Consider

• Safe Harbour Protection – Enables directors to trade while developing a plan.

• Small Business Restructuring (SBR) – For eligible businesses, offering debt negotiation while directors remain in control.

• Voluntary Administration – For more complex cases requiring external control.

Conclusion A clear, realistic restructuring plan backed by professional advice is a roadmap to survival and success. Merchants Advisory works with businesses to develop and implement plans tailored to their needs, whether through informal arrangements or formal processes.