Enterprise Development and Restructuring

Private sector is widely recognized as the engine for growth. In developing countries, manufacturers and suppliers experience difficulties in maintaining domestic share, never mind compete in international markets. This serves as a significant barrier to economic reforms. A number of initiatives have been established to encourage dissemination and integration of international best-practice in marketing and manufacturing practices and techniques into not-reconstructed enterprises in developing countries.

We have successfully undertaken a wide range of activities in this sector in many countries. Our services in private enterprise development include:

• introduction of international best practice in marketing and production, technical, financial and management skills and techniques into small and medium-sized enterprises;
• advice on export promotion and import substitution strategies; and
• industry sector reviews for governments seeking to implement sector-wide support  programs.

The environment for enterprises can change significantly over a period of time, in both developed and developing countries. Major recent change is associated with the breakup of the Soviet Union in the 90s, which has led to a new set of currencies, national borders, and regulations. Supply links between enterprises, formerly coordinated by Moscow-based branch ministries, are now organized in a wide variety of ways. State financing, formerly all important, is now often no longer sufficient or sustainable. Interactions with world markets, once subject to strict administrative control, now represent a much bigger opportunity and threat. Prices and exchange rates, once fixed irrespective of economic fundamentals, now openly reflect the effect of various economic policies.

While changes in economic conditions play vital role, enterprise restructuring is not just a feature of post-socialist transition. Enterprise restructuring is a fundamental, continuing process in market economies, e.g. division of AT&T.

The most important aspect of enterprise restructuring is not specific initiatives but creating the capacity for continual and efficient change. Managers of enterprises around the world recognize that technological change and international competition are shortening product cycles and producing a faster changing economic environment. Such an environment increases the importance of learning and adaptation, as well as the values of cooperation, trust, and mutuality that make continual change possible and efficient.

We provide hands-on advice and professional solutions for our clients. Our advice in enterprise restructuring includes:

• Independent business review (strategic, financial)
• Identification of restructuring potentials, development of restructuring concepts and accompaniment of implementation
• Control restructuring process
• Management of liquidity and/or personnel
• Identification of potential strategic investors
• Relocation of operations to lower-cost sites
• Reorganization of particular functions (e.g. sales, marketing)
• Renegotiation of corporate debt to reduce interest payments
• Sale of under-utilized assets
• Outsourcing of operations