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TURNAROUND AND BUSINESS RENEWAL SERVICES
We have over 25 years of experience
helping business owners and their companies deal with turnaround
issues and renew the value of their business. These
services can be performed on a consulting basis or on an
interim CFO assignment. Our engagements frequently include
other services described on this website such as valuations
and business sales. Here are some examples of how we can
help your distressed or underperforming business:
- Crisis Management - Perhaps
you are in a situation where you are in default on your
bank loan, suppliers have stopped deliveries, the electric
company is threatening to cut off power and cash is scarce.
We can help you establish first order priorities, negotiate
with your creditors to get raw materials and services
restored and develop a detailed cash flow program to sustain
these vital functions.
- Business Assessment - After
your business is stabilized, and often at the same time,
we work with you to conduct a business viability assessment.
The process helps to identify the cause of your current
underperformance, looks at products, processes, plants
etc that are working and should be nurtured and looks
at ways to cut expenses and improve operating efficiencies.
The purpose of the assessment is to bring the business
to cash flow positive and map a way to sustained profitability.
- Replacement Financing -
Frequently a business in distress will have to deal with
lender fatigue, whereby your current bank wants to be
repaid and replaced with a new bank. This can be the result
of prolonged business problems that have gone uncorrected
or be a short-term issue brought about by a change in
portfolio direction by your lender. We have experience
in determining the kind of financing you need and the
know-how to put together a financing proposal that can
attract a replacement lender. We also have extensive contacts
in the lending community and can help you structure, negotiate
and close a refinancing deal.
- Business Sale - Sometimes
it is the business owner who suffers from business fatigue.
Occasionally the owner either lacks the resources, energy
or will to rebuild the business. In this case we can use
our business brokerage experience to sell the business
as part of a strategy to settle your business debts with
creditors. We can help the owner negotiate these settlements
and other issues, such as collateral, that might be associated
with the sale of company.
- Orderly Wind Down - On
rare occasions a business is so badly distressed that
a successful turnaround or refinancing is not possible.
Sometimes even a sale cannot be done successfully. In
these cases we can help you with an orderly wind down
of the business whereby cash and receivables are collected,
inventory, machinery and equipment and other assets are
sold or converted to cash and the total proceeds are used
to settle the debts of the business. Here again we can
work with you to negotiate the wind down budget, asset
conversion process and settlement amounts with your lenders
and creditors.
SAMPLE TURNAROUND ENGAGEMENTS
- Consultant/Precision Alignment
Service Company - Worked with Company management
to restore profitability, find new CFO and obtain new
replacement bank lender.
- Consultant/Specialty Knitting
Company - Worked with Company management to improve
operating efficiencies, find new Controller, revamp product-costing
system and obtain new replacement lender.
- CFO and GM/Recycled Paper Mill
- Assisted in sale of money losing business to strong
acquirer in related business, remained with new Company
as GM, successfully worked to acquire new equipment, improve
plant maintenance, deal with union and reverse significant
prior year loss.
- CFO/Plastic Bottle Manufacturer
- Worked with management to improve operating efficiencies,
reduce expenses, implement budget and product costing
improvements and successfully sell company.
Most of our turnaround engagements have been performed
on behalf of our clients on a consulting or interim CFO
basis. From time to time we have performed other services
related to distressed businesses. These include:
- Receiver in Federal Court
- Assignee for the Benefit of Creditors
- Bankruptcy Court Examiner
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Professional
Perspective
MANAGEMENT
DENIAL
Most turnaround
experts such as bankers, attorneys and consultants
all agree that the single biggest reason why
a business fails to successfully recover is
that the owner waits too long to get help.
Business owners are by nature optimistic and
hard charging. These traits can blind them
to the to the fact that their business dynamic
has changed and they need to make a significant
change in the management of their business.
Most business problems are not fatal if identified
and dealt with while financial resources still
exist to do so. An experienced, impartial
outside expert can help identify the core
problem(s), recommend solutions and help implement
them effectively.
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