A corporate recovery (also referred to as corporate turnaround, restructuring, retrenchment, or downsizing) is a rescue undertaken by professional

accountant An accountant is a practitioner of accounting or accountancy. Accountants who have demonstrated competency through their professional associations' certification exams are certified to use titles such as Chartered Accountant, Chartered Certifi ...

s or

financiers An investor is a person who allocates financial capital with the expectation of a future return (profit) or to gain an advantage (interest). Through this allocated capital most of the time the investor purchases some species of property. Typ ...

who are trained to assist the management of a company in financial and other difficulties. This work is usually initiated at the behest of the directors of the company and is normally undertaken by licensed

insolvency In accounting, insolvency is the state of being unable to pay the debts, by a person or company ( debtor), at maturity; those in a state of insolvency are said to be ''insolvent''. There are two forms: cash-flow insolvency and balance-shee ...

practitioners. Corporate recovery generally involves certain steps to achieve financial stability, such as asset liquidation, divestment, product elimination, layoffs, and operational efficiency improvements. Firms may initially undergo a retrenchment stage whereby they cut costs and stabilize their finances. This is followed by a recovery stage, whereby long-term profitability and growth are prioritized. Strategies for the recovery stage may include market penetration, re-concentration, segmentation, acquisition, and new product-market expansion. Firms may assist in corporate recovery by offering services related to bankruptcy, financial advisory, performance improvement, trustee, and restructuring activities.

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Business terms Financial management Debt {{Business-term-stub