Recapitalization

Recapitalization is the process of restructuring the company’s equity and debt management as a part of assets management. Recapitalization usually occurs before the company either exits the market, lowers taxes, or takes measures against hostile actions of competitors on the market to protect itself against a takeover. Asset management should be done with strict accordance to law in order for the company to implement the exiting strategy and to avoid punitive sanctions from the authorities.