Benefits and roadblocks of reorganization

For example, the company buys one company’s stock in order to widen the head company’s consumer market. At the same time, there are an amount of roadblock of the reorganization. Firstly, this process is usually not cheap; companies have to invest additional money to finance all changes. That could be expenses for buying stocks, consulting, CEO’s salary, and identity changing. Secondly, reorganization and its positive effect take much time. While this time, the reorganizing company suffers from expenses and usually unprofitable business activity.So undoubtedly, the reorganization is very important, necessary and useful process. Otherwise, reorganizing companies must calculate all expenses of the process and be prepared for them in order to escape financial troubles and crash as a result.