Business restructuring as a tool of financial strategy of a company

Authors

DOI:

https://doi.org/10.3846/bm.2014.014

Keywords:

restructuring, company’s financial strategy, company’s financial performance, company’s market value, effect of synergy, capital assets pricing model (CAPM)

Abstract

The authors examined conceptual basics of the company's financial strategy, studied its development possibilities under inconsistent economic conditions, and developed methodological ground of organizing and enacting restructuring by using of a particular example. The actual restructuring target gains an additional effect (effect of synergy). The company's market value indicator concept can be used as the best quantitative indicator to evaluate the effect of synergy. The goal of research is to justify the attractiveness of business restructuring used to increase a company's market value and develop restructuring program. Upon examination of the implementation of a financial strategy mechanism in companies experiencing financial difficulties, the evaluating mechanism of the company restructuring effect was found to have been improved from the aspect of a company‘s financial performance and indicators of market value.

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Published

2014-01-01