Our turnaround and crisis management practice offers critical independent assistance to companies experiencing financial distress and those with underperforming assets. Since cashflow often is the immediate need, we work with management to implement comprehensive cash maximization techniques. We calmly and confidently represent the company in discussions with lenders, vendors and investors as we lay out both short and long term plans to stabilize the business and put it back on track to meet its financial objectives.
Exogenous factors, changes in the competitive landscape and changes in economic conditions can cause companies to rapidly find themselves in a financial crisis. This is particularly true with highly leveraged companies. Our partners possess a wealth of experience working with companies in distressed situations in virtually every industry and representing lenders and investors to improve non-performing portfolios.
Fortunately, many successful financial managers have never found themselves in a financial crisis. Companies with underperforming assets or deteriorating cash flows face a host of issues they may have never encountered before, including tighter management of cash flows, the need to extend vendor financing, and dealing with lenders who have lost their patience or faith in management’s ability to deal with the crisis. The added burdens of increased reporting to “at risk” constituencies can often be more than current management can handle. We have the experience and the horsepower to provide needed management assistance in these tough situations.
We can provide the necessary oversight and reporting to the Company’s lenders and other investors to provide an objective review of the Company’s business plan. Oftentimes, management may have a lender-imposed monitoring mechanism as a condition to obtaining a loan waiver. We can review cash conservation plans and projected 13-week cash flows and we can monitor actual performance against these plans. We can also perform a risk and opportunity review of business and operating plans and we can assist with negotiation of forbearance agreements and restructuring plans.
Examples of our work include: