This work is usually initiated at the behest of the directors of the company and is normally undertaken by licensed insolvency practitioners.
Corporate recovery generally involves certain steps to achieve financial stability, such as asset liquidation, divestment, product elimination, layoffs, and operational efficiency improvements.
Strategies for the recovery stage may include market penetration, re-concentration, segmentation, acquisition, and new product-market expansion.
This helps to rebuild trust with stakeholders and ensure that future decision-making aligns with both legal and ethical standards, preventing a recurrence of previous failures.
[3] Firms may assist in corporate recovery by offering services related to bankruptcy, financial advisory, performance improvement, trustee, and restructuring activities.