The Company in the Decline Stage: Diagnosis, Alternative Scenarios and Reorganization

The crisis and the restructuring of companies are very important and current issues.The life of a company is characterized by different phases that have different characteristics and peculiarities. The company in the process of decline, after a careful diagnosis, must choose whether to restructure or continue to work without hoping to obtain economically satisfactory results. Until now, scientific studies have not investigated the issues of the diagnosis of companies in the phase of decline while the methods of business evaluation have been extensively studied in order to identify the indicators of the crisis. The objective of this paper is to focus attention on the preliminary business diagnosis activities in companies in crisis and on the study of alternative scenarios in order to trace the guidelines for a restructuring plan. After reviewing the literature, an analysis was carried out on the phases of corporate diagnosis; in addition, the second level of analysis was carried out to examine the possible alternative scenarios and finally the issue of the recovery plan was examined in depth