Business restructuring is not a sign of failure — it is often a sign of a business owner making smart strategic decisions before circumstances force them. Whether you’re reorganizing your legal entity structure, consolidating operations after a difficult year, managing through a revenue decline, or restructuring debt to improve cash flow, FJ & Associates, PLLC provides the financial analysis and CPA guidance you need to make the restructuring work.
📞 (801) 927-1337 | ✉️ admin@cpaone.net
Types of Business Restructuring We Advise On
Entity Restructuring
As businesses grow, the legal structure they started with may no longer be optimal. We advise on conversion from sole proprietorship or partnership to LLC, S-Corp election for established LLCs, conversion from S-Corp to C-Corp, creation of holding company structures, and multi-entity structures for businesses operating across locations or verticals.
Operational Restructuring
When a business needs to cut costs, consolidate departments, or pivot its service model, the financial analysis driving that decision matters. We model the cost and revenue impact of eliminating a product line or service, staffing reductions, location consolidation, and vendor and contract renegotiation to reduce fixed costs.
Debt Restructuring
Businesses carrying debt service that exceeds cash generation need a restructuring plan before the situation becomes a crisis. We help model current vs. restructured debt service obligations, prepare financial packages for lender renegotiation, identify assets that could be liquidated to reduce debt, and evaluate SBA workout programs.
Financial Turnaround
For businesses experiencing declining revenue, mounting losses, or cash flow crises, we develop turnaround plans — identifying the specific financial interventions required to return the business to profitability.
The CPA’s Role in Restructuring
Business restructuring has significant tax consequences that are easy to get wrong. Entity conversions, asset sales, debt forgiveness, and owner buy-outs all trigger tax events that can result in unexpected liabilities if not planned carefully.
Debt Cancellation Income — When a lender forgives debt, the canceled amount is generally taxable income — unless specific exclusions apply (insolvency exclusion, bankruptcy, qualified farm debt). We analyze applicability of these exclusions before a debt restructuring is finalized.
Entity Conversion Tax Treatment — Converting from a C-Corp to an S-Corp requires a 5-year built-in gains tax monitoring period. We model the tax impact of any conversion before it’s executed.
Asset Reallocation — Moving assets between entities can trigger gain recognition, depreciation recapture, or transfer taxes. We structure these transfers to minimize tax friction.
Restructuring and Your Financial Statements
A restructuring plan is only as good as the financial projections that support it. We build financial models showing pre-restructuring financial position, restructured financial position, cash flow impact during the transition, and projected timeline to target financial ratios.
Restructuring as Part of an Exit Plan
Many restructurings are undertaken specifically to prepare a business for sale. A business with a clean entity structure, reasonable debt levels, and defensible margins commands a significantly better valuation. See our exit strategy and business sale planning services. Ideally, restructuring work begins 18–36 months before a planned sale.
Navigate Change with Financial Clarity
📞 (801) 927-1337 | ✉️ admin@cpaone.net | 612 N Kays Dr Suite 120, Kaysville, UT 84037
Missy Dennis, CPA | Partner | FJ & Associates, PLLC | Kaysville, Utah
Missy holds a Master of Accounting degree from the University of Utah and is a licensed Certified Public Accountant. With more than twenty years of public accounting experience, Missy specializes in tax preparation and advisory, bookkeeping strategy, estate and trust taxation, audit and consulting services, and small- and mid-sized business advisory.
