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The recapitalization of a comapny is a complex and individual process that includes the reverse transaction of the crisis. In may cases, a crisis situation is recognized much to late and as time goes by a successful rehabilitation will become more and more difficult. Therefore, the first responsibility of management, Supervisory Board and advisors is to keep an eye on critical developments. With a certain resignation a loss of further development the company stands at the beginning of a crisis. These first warnings will be often ignored by the company's management. The crisis spiral continues and in consequence, the company looses market-shares, the turnover falls and costs increase. In this stage, the equity capital is already affronted, but in most cases the company's management thinks that it is only a temorary depression. At this point competent advisers should be hired because with the increasing crisis the chances for recapitalization shrink.
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