Restructuring of Companies in Qatar

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By Heintji Nagal

The business restructuring is part of the transformation and turnaround that aims for making fundamental changes in the business conducts to deal with changes and financial challenges to achieve sustainability and growth.

Corporate restructurings are the actions/steps that involve significantly modifying the debt/financials, operations, or the structure of a company as a way of solving/addressing financial and operational issues and improving the business; typically, the restructuring strategy is either downsizing or down scoping (e.g. eliminating businesses/cost centers that are unrelated to the company's core business).

For the businesses that are facing financial or operational stress, the transformation and turnaround strategy is not an option as otherwise the business will not sustain and can not be saved; this strategy, if properly planned and implemented, will help maintain the business and even allows it to achieve future growth. This process applies to companies of all sizes and business sectors.

The restructuring can be done in various steps and approaches depending on the work methodology; these can be summarized in a 3-phase approach summarized as such:

Phase 1 - Diagnosis and Audit: As an initial step, the business performance is evaluated at the financial and operational levels while taking into consideration the market factors; it should also cover the current strategy, operational effectiveness, controls (financial and non-financial), and the identification of risks. This phase is concluded by a comprehensive audit report that covers the GAPs/weaknesses/ challenges in business management, operations, financials, and industry/market.

Phase 2 – Formulation of the Restructuring Plan: The detailed plan along with the required resources and corrective actions is developed along with the implementation mechanism (timeline, the priority of tasks, responsibilities, KIPs measurement, expected measurable results, etc.) along with the Implementation Framework and success criteria based on measurables criteria following best practices and industry benchmark.

Phase 3 – Implementation of the Restructuring Plan: The implementation will be done at all company levels including the improvement of management systems, business strategy, implementation programs/activities, etc. The implementation should include a measurement mechanism to monitor the results for continuous improvement.

The successful business leader should not wait or delay undertaking any corrective action that aims to improve his business operation; the early diagnosis with proper action is much less costly to the business and will help achieve quicker results.

If you would like to know more about the companies’ restructuring service in Qatar please contact us at +974 6669 3950 or send an email to This email address is being protected from spambots. You need JavaScript enabled to view it..


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