RESTRUCTURING PLANS

 

The economic crisis associated with a fall in customers demand is the cause of a rapidly deteriorating business position of many companies that is reflected in the following areas:

 

  • Decline of sales revenue
  • Deteriorating of the results
  • Extension of payment terms
  • Extension of the time period for the sale of inventories
  • Liquidity deteriorating of the company
  • Reduction of the investments

 

The restructuring plan should provide a complete resolution of each issue. Basis for the preparation of corrective actions is the in-depth financial and business analysis of company operations (due diligence).

 

The aim of the restructuring plan is:

 

  • Balancing of revenues and expenditures (recovery of the financial results)
  • Balancing of receipts and outflows (sanation of cash flows)