In Australia, the small business restructuring process provides a simplified pathway to restructuring debts and operations. It involves drafting a debt restructuring plan with the help of a small business restructuring practitioner. This plan is then presented to creditors for approval. If the majority (in value) of creditors approve, the plan is put into place, allowing the business to continue operations while repaying its debts in a manageable way.

Both large and small businesses can engage in restructuring, regardless of their industry. Specific eligibility criteria, particularly for formal restructuring processes, may vary by country and the type of restructuring involved. In Australia, to access the small business restructuring process, a business needs to have liabilities of less than $1 million.

Corporate restructuring can be categorized into operational and financial restructuring. Operational restructuring involves changes in the company's processes, management, or strategy, such as merging departments or outsourcing certain functions. Financial restructuring involves changes in the capital structure of the company, such as debt consolidation, renegotiating loan terms, or issuing new shares.

Examples of restructuring include a merger or acquisition, selling or spinning off a division of the company, downsizing or rightsizing the workforce, changing the management structure, consolidating or renegotiating debts, or issuing new equity to change the company's capital structure.

While restructuring can offer several benefits, it also has potential risks or disadvantages. It can lead to short-term disruption in the business and may impact employee morale due to uncertainty or changes. It may also incur costs, distract management from their regular duties, or potentially damage relationships with suppliers, customers, or creditors if not managed well.