Corporate Financial Distress: Restructuring and Turnaround

✍ Scribed by Alberto Tron

• Publisher: Emerald Publishing
• Tongue: English
• Leaves: 185
• Category: Library

✦ Synopsis

Financial distress in corporations is a frequent phenomenon, particularly during times of national and international economic crises; but this can be used as an opportunity and incentive to implement a systematic process of reorganization and revitalization of a business. These plans for recovery can lead to future successes and sustainability rather than just a fix to ensure survival of the business. Crises, if managed promptly from a strategic point of view, can lead to pragmatic changes and bring new value to the company, avoiding market foreclosure and the negative social consequences.

Corporate Financial Distress, Restructuring and Turnaround identifies a recovery plan, monitoring, deployment and provides tools to direct economic crises towards financial success in the future and financial stability in the short term. An analysis scheme has been developed and is provided to help measure economic, financial and strategic performance with the why, how and what in relation to the recovery plan. A model for the detection and evaluation of the economic-financial performance implemented by an execution of a recovery plan and a set of indicators for evaluating the variables activated by the process of strategic change are identified.

Tron uses alert analysis perspective to examine crises and recovery in business to outline discontinuity with the past in order to address strategic organizational changes and lead the financial process of rehabilitation towards success.

✦ Table of Contents

Cover
Corporate Financial Distress
Corporate Financial Distress: Restructuring and Turnaround
Copyright
Table of Contents
List of Tables and Figures
About the Author
Preface
1. Corporate Distress and Financial Equilibrium: Genesis and Prognosis
1. Introduction and Background
2. Defining Corporate Distress: From Decline to Crisis
3. Crisis Factors: Identification, Handling and Governance
3.1 The Time Factor
3.2 Internal Causes
3.2.1 Inefficiency Crisis
3.2.2 Overcapacity Crisis
3.2.3 Product-related Crisis
3.2.4 Crisis Related to Lack of Planning and Innovation
3.3 External Causes: A Holistic Vision
4. Business Distress: The Importance of the Financial Structure Equilibrium
4.1 Financial Requirements and Their Constant Variability
4.2 Interdependence and Complementarity of the Company's Different Sources of Financing
4.3 The Choice of the Most Convenient Financial Structure and ‘Leverage’
4.4 Assessment of the Financial Equilibrium
2. Corporate Recovery Plans between Value Protection and Management Turnaround
1. Corporate Financial Distress and Continuity: The Protection of Business Value. National, Economic and Legal Dimensions
2. The Feasibility of a Recovery Business Plan: Best Practice Principles (CNDCEC)
3. Turnaround Strategy of a Financially Distressed Company
4. Developing a Business Turnaround Plan
3. Financial and Operational Business Turnarounds: Execution and Monitoring Complexity ()
1. The Recovery Project, Its Complexity and Execution
2. Company Organisation: A Strategic Resource in the Recovery Process
3. Organisational Recovery as an Element of the Action Plan
4. Feasibility of the Recovery Financial Plan as a Result of a Correct Execution Process (Deployment)
5. The Monitoring of the Recovery Business Plan
4. Common Characteristics of Firms in Financial Distress and Prediction of Bankruptcy or Recovery: An Empirical Research Ca ...
1. Overview of Corporate Financial Distress and Bankruptcy (with a Special Focus on Italy) and ‘Early Warning’ Signs
2. The Company Recovery in Theoretical and Empirical Research Work
3. An Empirical Analysis by the University of Pisa in 2012 on the Correlation between Financial Flows and Economic Performa ...
4. Empirical Analysis by the University of Pisa in 2013 on: (a) Cash Flow and Correlations with the Economic Performance of ...
5. Corporate Crises, Weak Signals and Debt Restructuring: An Empirical Analysis in 2014–2015 by Bocconi University and SDA ...
6. Business Administrative Systems (BAS) and Bankruptcy Financial Distress (Based on the Observatory on Corporate Crisis – ...
6.1 Reorganisation Strategies and Administrative Systems
6.2 Business Administrative Systems in Financial Distress Situations
6.3 Results
7. Innovative Empirical Research by Bocconi University and Parthenope University in 2018 on Corporate Recovery over a 10-ye ...
8. Empirical Research for the Predictive Ability of Cash Flows for Measuring Firm Performance (2020)
8.1 Data Source
8.2 Regression Model
8.3 Results
9. Conclusions
5. Business Case: The Financial Restructuring of the ‘Alpha’ Group (2013–2015)
1 The ‘Alpha’ Group and Its Business Model Over Time
2 The Reference Market and Sector
3 Causes of the Alpha Group Crisis
3.1 Exogenous Causes
3.2 Endogenous Causes
4 Recovery Actions: The 2013–2015 Financial and Strategic Recovery Plan
5 The Proposal of a Financial Intervention
6 A Successful Turnaround: Overcoming the Financial Crisis Situation of the Alpha Group
7 The Achievement of the Commercial, Economic, Equity and Financial Objectives of the Recovery Plan during the Turnaround P ...
8 The Group's Performance in the Recovery Phase (2013–2015)
9 The Prospective Financial Balance: Guidelines and Strategic Objectives of the Post Turnaround Plan (2016–2018)
10 From Financial Crisis to Value Creation: The Search for a Partner to Foster International Growth
11 Conclusions
References
Index