Role of Restructuring in Crisis Development

Abstract

A business with low adaptability to its relevant environment usually gets into difficulties and undergoes a crisis development that might result into insolvency. The article deals with the process of business restructuring as a way of crisis solution. Business restructuring is characterized as a large and comprehensive decision-making process of business recovery with the aim to strengthen the performance, effectiveness, competitiveness and financial stability of the business. The authors focus on the course of a crisis, symptoms of a crisis in individual stages of crisis development and relevant causes of crisis development. Moreover, the article covers the explanation of the restructuring conception, the description of possible crisis solutions, the content of restructuring feasibility and value aspects of restructuring.