Restructuring of business as a way of increasing a company’s value

Abstract

Business managers in Latvia divide restructuring into two main kinds. The strategic restructuring is intended to increase the value of equity for shareholders, keep the corporative property and deal with other issues for an enterprise to maintain its functional condition. The restructuring of companies in a situation of crisis is focused on the restructuring solutions for insolvent or bankrupt enterprises to lead them back in the condition of functional enterprise.

In generally, restructuring is the corporate management term for the act of partially dismantling and reorganizing a company for the purpose of making it more efficient and therefore more profitable. It generally involves selling off portions of the company and making severe staff reductions.