Turnaround for Lenders.
Evaluation | Turnaround | Workout
Evaluation
If you’re a lender with a troubled client, it’s frequently valuable to obtain a professional, independent perspective of the client’s business capabilities and potential. This perspective is especially valuable when critical information is missing or disputed by stakeholders. Business Edge will answer specific questions or provide a realistic assessment of the company. That can mean the difference between a success and failure. Our services to lenders range from informal viability assessments to extensive analysis of client business capabilities, plans, and financial projections.
Turnaround
Turnaround consulting is a simple five step process that takes special skills to implement:
- Situation analysis (viability and SWOT analysis)
- Stabilize the business (crisis, cash flow, lender, and vendor management)
- Restructure management (Change is difficult if the same management team remains in place.)
- Restructure the business (strategic initiatives and plan implementation)
- Return to normalcy (blueprint for continued success)
Business Edge’s full time turnaround consultants usually conduct their work on-site. Our goal is to provide quick, constructive and cost effective recommendations that help solve the critical issues the business faces.
In most engagements, the urgent need for cash demands that we develop a cash management strategy (often using a 13 week cash-flow forecast). This forecast dictates how much time we have to develop solutions. While inadequate cash flow is a frequent problem, it usually masks underlying company weaknesses. Business Edge constructs detailed analyses that provide the basis for the appropriate action steps, guiding the implementation, and communication with stakeholders.
Workout
Liquidation: Sometimes company liquidation is the only solution. Proper development and execution of a wind-down plan preserves value and optimizes stakeholder recovery.
Business Edge excels in developing strategies to revitalize, restore and optimize value and is experienced in dealing with all involved parties. We’ll determine if an out-of-court solution such as an assignment for the benefit of creditors should be used. Or, does the situation merit a Chapter 7 or 11 plan? How and when should the assets be sold? Individually or packaged? Is an auction the right strategy? Business Edge will answer these questions and then create and execute plans to achieve superior results.
Bankruptcy: We strive to provide solutions that avoid filing for bankruptcy protection. However, in some situations, bankruptcy can produce the most optimal outcome by offering a company additional time to develop the most feasible restructuring plan.
We have helped companies through this process. Working with your bankruptcy attorney, we can evaluate the costs and benefits of filing for protection. Our experience enables us to guide you through the process and minimize the unforeseen pitfalls that will occur.