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“How to maintain the efficiency of the production enterprise” — article by Inna Vavilova and Ruslan Mukhametshin for “Corporate lawyer”

"To make an informed decision "to save or not to save", it is necessary to answer two eternal questions: "who is to blame" and "what to do". Answering the question "who is to blame", it is necessary to understand why the company was in bankruptcy and what are the nature of the reasons — temporary, caused by unskilled or unscrupulous management, market conditions, errors in the sources and timing of financing, or permanent — outdated production capacity, reduced or no demand for products, the wrong direction of business in principle. Already here it can become obvious, for example, that without radical modernization the enterprise cannot generate operating income in the medium term. Then keeping the activity in the procedure is a dubious undertaking. If after answering the first question the desire to continue the activity has not disappeared, it is necessary to decide what to do.

The first step is to study the market, then the production process, the set of real and financial assets of the company. And only then build a financial model and draw conclusions".

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