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  • Organizational Structure

    Organizational Structure

Organizational Structure

A large portion of Stephen Dietrich’s work is devoted to assisting buyers, sellers and management on how to structure, or restructure, an organization to allow it to purchase a business, run efficiently from a liability, tax or operational standpoint, or restructure to exit. This includes how to integrate outside actors like lenders or company-wide vendors or service providers. The issues associated with organizational structure are important to small businesses and startups as well as to large enterprises. All people who are running some sort of operation need to understand the benefits of the different types of structures available.  This does not only mean a corporation or a limited liability company. This includes different layers of ownership from a single member limited liability company operating a jewelry design company, to a multi-layered corporate or limited liability company structure owning and operating multiple parcels of real estate.

I often work alongside clients to help them understand the best organizational structure for their business. These matters force ownership to really understand the business at a deeper level than they may have previously. When working with a client, I find it interesting when I ask why they are structured the way they are this inevitably leads to a detailed recounting of the history of the company and often the reason the company was started in the first place. This type of history may or may not be integrally important to the ultimate structuring question, but it will often provoke some reenergizing actions in the company as they recount the founding of their company.

This process allows us to recapture the flexibility and openness to making sure the structure is the best for the situation and it helps us be creative in looking at problems and solutions. This is important in the context of a company’s structure because inertia in this realm of legal work is strong, and in order to really help clients, I have had to find ways to overcome the institutional inertia. We do not always make a change, but through this process we know the current structure is the correct one.”

Stephen Dietrich – Stephen Dietrich

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