The Role of Business Restructuring in Financial Performance Enhancement Inese Mavlutova  In today’s dynamic environment, it is often essential for businesses to undertake appropriate restructuring measures that would enable them to capitalize on their strengths. Restructuring is one of the most popular scenarios for company’s development. Motives of restructuring vary significantly; still the main target is company's market value increase and financial performance enhancement in a result of implementing company's restructuring program. The author examined conceptual basics of the company's financial strategy, study restructuring as one of common methods of company’s development under inconsistent economical conditions, examined the methods of evaluating the company's market value and financial analysis used during restructuring process.    Business Restructuring, Company’s market value, Financial performance, Risk, Financial indicators, Multiple discriminated analysis, CAPM. I. INTRODUCTION During recession and after it a majority of companies experience financial difficulties, and one of the possibilities of managing them lies in the restructuring of the company. Due to impact of inconsistent economical environment and processes of globalization life cycle of companies has shrunken and business has become more dynamic, which has encouraged processes of restructuring companies. Motives of restructuring vary significantly, still the target is one – increase of company's market value and raise of efficiency in a result of implementing company's restructuring program. Restructuring is a composite of numerous interrelated activities – from diagnostics to restructuring organizational structures and business processes based on modern management approaches. As a result of research conclusion has been made that restructuring is a process aimed at maximization of company's market value by implementing methods of improving company's activity. During the process of enacting successful financial strategy the following targets are gained by restructuring the company: • increase of company's equity value as an obligatory condition to increase the competitiveness, • company's financial position is improving due to strengthening of its solvency, liquidity, financial stability and profitability, The objective of the research – to justify attractiveness of restructuring used to improve the company's financial performance and position, based on study of methods of modern financial analysis and management. Generally accepted quantitative and qualitative methods of research in management science were used, including induction and deduction, analysis and synthesis, logically constructive and statistical methods, economic mathematical simulation, description and display methods of numeral information. II. BUSINESS RESTRUCTURING AS A TOOL OF FINANCIAL STRATEGY It is examined during research that in scientific literature concept about strategy as a composite of conditions to make management decisions about future activities of the company formed in 20 th century's early eighties. Enactment of strategically significant decisions is at first related to attracting monetary resources, respectively, to the quality of financial management in a company [1]. The main component of financial management on the other hand is financial strategy, which includes establishment of sustainable system of financial activity's targets and indicators, as well as determining priority tasks for present perspective. In general financial strategy is defined as business policy in the matter of main directions of financial development. Aspects of financial strategy are described in publications of   ,  .[2],  ,  [3]. Company's financial strategy is developed with consideration of different fixed conditions or their predictable development. Since they are not taken into consideration often, especially in long;term perspective, it is always possible that set targets and planned strategic result will not be accomplished. Financial strategy's potential deviation from the objective is considered as consequences emerging from financial risk. The matter of the complicity of activities related to preventing the difficulties is dependent on the complicity of the problems – starting with technical insolvency and concluding with bankruptcy. During the     financial position of the company worsens, which initially does not influence the payments to creditors. The criterion chosen is the limitation of interests of the owner, respectively, the real loss of owners investing. Theoretical ground of offered criterion and numeral measurement is completely possible, despite of apparent abstractness. For owners the company is an object of investing financial resources, allowing to increase the value of the resources invested. In order to compare the effectiveness of investments, alternative investments with the same risk level can be used as the ground. Therefore, to determine the direct loss to owners, present market value and present initial investment value of the equity capital should be compared, considering that they will be used as alternative investments with the same risk level. INTERNATIONAL JOURNAL OF MATHEMATICAL MODELS AND METHODS IN APPLIED SCIENCES Issue 2, Volume 7, 2013 166