Economist Kenneth Boulding once said that all organisms, be it social or economic, exhibit a “lifecycle” of birth, growth, decay and death. Business organisations are often likened to living organisms and as time moves on, they change and evolve. And just like living organisms, a typical business lifecycle revolves around four stages: birth, growth, maturity, and decline.
Life cycle stages:
Between these different stages, businesses are likely to face challenges, and may have to make changes in leadership, management and thinking – or risk early decline and perhaps, eventually, failure. Many businesses finally choose to restructure when facing financial distress. The most common forms of restructuring are managerial, operational, asset or financial restructuring.