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.