Sanitation of the enterprise

Enterprise rehabilitation is a set of measures to restore the solvency and financial stability of a company in a difficult situation.

Sanitation can be considered as “financial recovery” of the enterprise, the purpose of which is to prevent bankruptcy and bring the business out of crisis. This is achieved by restructuring assets and liabilities, attracting investments, optimizing costs, etc.

The enterprise itself can act as the initiator of the rehabilitation, if it is aware of the crisis situation and seeks to overcome it. Creditors can also initiate reorganization if they are interested in debt repayment, and reorganization can be offered by the commercial court as an alternative to bankruptcy of the debtor company.

The main goals of the rehabilitation of the enterprise are:

• Restoration of solvency – when the enterprise again gets the opportunity to fulfill its financial obligations in a timely manner.
• Repayment of debts to creditors – rehabilitation allows you to develop a schedule for repaying debts to suppliers, banks, tax authorities, etc.
• Reduction of losses – optimization of costs, improvement of efficiency allow to reduce the losses of the enterprise.
• Improvement of efficiency – rehabilitation is aimed at modernization of production, management, logistics, which improves the operation of the enterprise.
• Preservation of jobs – rehabilitation makes it possible to avoid mass dismissal of employees of an enterprise in crisis.

Therefore, rehabilitation is intended to comprehensively improve the financial and economic condition of the enterprise and bring it out of the crisis.

The main stages of rehabilitation of the enterprise:

1. Analysis of the financial state – a detailed study of the state of the enterprise, identification of problem areas that led to the crisis.
2. Development of a rehabilitation plan – determination of specific measures for the rehabilitation of the enterprise – debt restructuring, optimization of costs, renewal of fixed assets, etc.
3. Implementation of planned measures – practical implementation of steps for financial recovery in accordance with the developed rehabilitation plan.
4. Control and monitoring – analysis of the effectiveness of implemented measures, adjustment of the rehabilitation plan as necessary to achieve the set goals.
5. Summing up – assessment of the results of the rehabilitation, analysis of the achievement of goals regarding the financial recovery of the enterprise.

Accordingly, rehabilitation is a step-by-step process of bringing the enterprise out of crisis through the implementation of a set of special measures.

Enterprise rehabilitation measures can be aimed at:

• Restructuring of production – modernization of equipment, optimization of production processes, change of product assortment in order to increase efficiency.
• Restructuring of finances – restructuring of loans, write-off of debts, attraction of investments to improve financial condition.
• Management restructuring – improvement of the organizational structure, management system, improvement of management qualifications.
• Change of organizational and legal form – reorganization through merger, merger, division, allocation for the purpose of optimizing the structure.
• Optimization of the staff and expenses – reduction of irrational expenses to reduce the cost price.

Such measures make it possible to comprehensively improve the financial condition of the enterprise and bring it out of the crisis.

Rehabilitation of the enterprise is a long-term and painstaking work that requires the involvement of highly qualified specialists. After all, it is necessary to analyze the causes of the crisis in detail, to develop an effective rehabilitation strategy, to coordinate the implementation of all planned measures.

That is why it is important to trust the company “Prykhodko and Partners” in accompanying the remediation process. Our lawyers have many years of experience in bringing companies out of crisis. We will comprehensively approach your problem and help you achieve the set goals of rehabilitation. Together we will overcome difficulties and restore the successful operation of your company!