We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is Corporate Recovery?

Malcolm Tatum
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Corporate recovery is a process that focuses on helping a business that has gone through a financial downturn to survive and eventually regain a profitable status. Much of this effort is made with the effort of professional accountants who can aid in organizing expenses to best advantage, allowing the business to be positioned for the recovery. In some instances, other professionals may be involved in the effort, aiding in reorganization efforts that include hiring new managers or others to help turn the company around.

The basic process of corporate recovery involves identifying the reasons for the decline and assessing what resources are on hand to bring a halt to the downturn. Once a solid understanding of how the company came to be in its current condition is obtained, it is possible to begin the cleanup process. During this phase, the idea is to assess which assets are on hand that can be used to bring some order to the company finances. This often includes the tasks of managing debt more efficiently and may even mean selling off some assets so that the core operation can continue functioning and generate revenue during the recovery process.

Once the assessment of company assets and finances are complete, some amount of reorganization is likely to occur as the corporate recovery effort continues. This phase may involve reassigning employees to new functions, eliminating repetitive job positions, combining others, and in general arranging the operation so that the most benefit is obtained from the resources on hand. This in turn helps to trim costs, allowing the business to retain more of its generated revenue. That additional revenue can be used to pay off debt and fund changes within the existing structure, moving the business closer to profitability.

In some instances, corporate recovery is a process that is managed internally, typically with the appointment of new executives or managers who oversee the process. It is also possible to outsource this process to companies that specialize in helping businesses that are failing to reverse the trend and become profitable enterprises once more. Since corporate recovery is a process that can take an extended period of time, the cost for outsourcing the effort can be significant. Assuming the effort is successful, this cost is usually offset early in the process, and can result in completing the corporate recovery in considerably less time than would be possible by attempting to manage the recovery without the aid of outside resources.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum , Writer
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.

Discussion Comments

Malcolm Tatum

Malcolm Tatum


Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.