The Bulletin of the Institute of Economics of the Russian Academy of Sciences № 4/2023.  Finance.

Olga A. Lvova

Dr. Sci. (Econ.), Associate Professor at the Financial Management Department, School of Public Administration, Lomonosov Moscow State University, Moscow, Russia

ORCID: 0000-0001-9835-3418

BUSINESS EVALUATION WITHIN CRISIS MANAGEMENT: APPROACHES FOR OWNERS, CREDITORS, INSOLVENCY PRACTITIONERS AND INVESTORS

89-111

1.67 MB

Full text

Abstract

The article suggests approaches to business evaluation by various stakeholders for crisis management purposes. For owners and managers, an identification system of business sustainability decline has been developed, including market, operational, investment, financial, managerial and organizational indicators. For creditors, a strategic map is proposed,

containing market, process, resource and financial triggers identified during express diagnostics and advanced trigger analysis. For insolvency practitioners, the methodology of financial analysis has been modified, supplemented by an algorithm for debtor’s transactions

analysis and identifying signs of “objective bankruptcy”. For potential investors, a scenario assessment model has been developed, which makes it possible to determine the benefits, opportunity costs, the feasibility of merger or acquisition of a distressed company, the cost of its restoration and integration, and the synergetic effect of such M&A.

Keywords: financial analysis, business sustainability, signs (indicators, triggers) of crisis, insolvency (bankruptcy), insolvency practitioner, debtor, creditor, investor, mergers and acquisitions with distressed companies, strategic map, financial ratios.

JEL: D25, G21, G33, G34, H12, M42

EDN: KTQLRS

DOI: https://doi.org/10.52180/2073-6487_2023_4_89_111

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Manuscript submission date: 29.06.2023  

For citation:

Lvova O.A. Business evaluation within crisis management: approaches for owners, creditors, insolvency practitioners and investors // Vestnik Instituta Ekonomiki Rossiyskoy Akademii Nauk. 2023. № 4. Pp. 89-111. (In Russ.). https://doi.org/10.52180/2073-6487_2023_4_89_111 EDN: KTQLRS

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