Business Restructuring as a Method of Strengtening Company’s Financial Position

Authors

  • Inese Mavlutova BA School of Business and Finance, Riga, Latvia,
  • Iryna Tokmakovaf Ukrainian State University of Railway Transport, Kharkiv, Ukraine,
  • Nataliia Prokopenko European University, Kyiv, Ukraine,
  • Sergiy Kalinichenko Kharkiv Petro Vasylenko National Technical University of Agriculture, Kharkiv, Ukraine,
  • Volodymyr Dykan Ukrainian State University of Railway Transport, Kharkiv, Ukraine
Abstract:

Restructuring  is relevant for companies that have free capital and need to expand for development purposes, as well as for companies that have relatively large problems with financial results and the relevant indicators indicate the necessary changes. Motives of the restructuring may be different, the authors put forward the following reasons: operation operational synergy, financial synergy, diversification, economic motives. Restructuring is one of the key methods  for company’s financial position strengthening. Motives of restructuring are various, but the objective  is company's value increase and  the strengthening of financial  position. The authors investigate the essence  of the company's financial strategy, studied restructuring as a modern approach of company development in the crisis period, as well as the company's valuation and financial analysis methods, which were used for restructuring.

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Journal title

volume 14  issue 1

pages  129- 139

publication date 2021-03-01

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