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Restructuring is an action taken by a company to significantly modify the financial and operational aspects of the company, usually when the business is facing financial pressures. Restructuring is a type of corporate action taken that involves significantly modifying the debt, operations or structure of a company as a way of limiting financial harm and improving the business.

A company can also do restructure its operations by cutting costs, such as payroll, or reducing its size through the sale of assets.

Companies may also restructure when preparing for a sale, buyout, merger, change in overall goals or transfer of ownership.

After restructuring, the company should be left with smoother, more economically sound business operations.

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