Restructuring-turn around studies and business recovery are business restructuring studies, which for various reasons are under great pressure and their viability is considered dubious or implausible.
The aim of a restructuring-turn around study or business recovery study is to investigate the real reasons that have led the company to difficulty and to come to the point to propose restructuring, reorganization, refinancing or any other moves that are considered necessary to reverse the downward trend of the enterprise and rescue the company.
In each case, a detailed study and examination of various alternative scenarios and conditions under which the firm could recover is conducted. Recovery and turn around scenarios may provide for various types of moves, such as redemption of redundant loans and debts to the government, capitalization of liabilities, changes in the management team, reduction of personnel, sale of fixed assets, changes in the distribution network and general logistics, elimination of loss-making sectors or products, outsourcing of various services, renegotiation of contracts with key partners, foreign markets, new strategic partnerships etc.
Usually, in a restructuring and recovery study, we end up with the most prevalent 1-2 scenarios of restructuring moves, which are presented to shareholders, banks or other donors, creditors, employees and other stakeholders, so that the final selection or layout of the plan is done, to which the company and the rest are bound to.
Finally, a recovery study is studied in detail and all economic forecasts tables for the coming years are presented, as is the case for sustainability studies. Thus, it does not only substantiate the validity of the assumptions and predictions, but also provides a basis for comparison with what will follow during the implementation phase of the plan.