Avoid a restructuring rigmarole

11 January 2015
The objectives of this shoddy and sham clean-up exercise were quite clear to the world: find buyers for most of his dud and non-performing corporations, which neither had any synergy with the group’s core agri-business nor had any profitable operations to write home about.
Consider all these facts and the wishy-washy manner of the sham restructuring, and you will not be surprised why most corporate analysts and business journalists began bestowing the epithet “A Serial Restructuring Robot” on G P Goenka.
The messages here are loud and resonating. One, restructure to build wealth and restructure with a purpose.
Two, do not restructure in desperation, as a knee-jerk reaction, as an escape route out of your bungling.
Three, never ever restructure as a compulsive disorder. Finally, avoid the temptation to opt for negative restructuring. Never opt for electroplating your assets and window-dressing your balance sheets.
Such hand-wringing desperation is sure to end up in a chain of wasteful and unfocused restructuring attempts that will do nothing but burn your scarce corporate resources, waste your precious corporate time, and push your corporation further on a directionless track.
That is so value-destroying and shareholder-unfriendly. So, go ahead and restructure, if that is the need of the hour. But, for heaven’s sake, do not set in motion a restructuring rigmarole.
Harish Kumar
Excerpts from Harish Kumar’s Canons of Corporate Surgery: 15 precious lessons from the past, available as an ebook on Amazon KDP and as a print-to-order paperback from Amazon CreateSpace. And also as an ebook in all formats and in all distribution outlets of Smashwords. The above post represents the climactic 10 paragraphs of the canon most-breached by robotic rejig rapscallions.


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