Many companies lost deep in the black forest find themselves with little or no cash and with a capital structure inconsistent with the scope of their operations.
When companies are faced with this reality, they often perform in desperate ways and often make decisions that lead to future financial problems, fraud and illicit management activities. We call this situation ... The Shorts! Once this situation arises, it creates a type of thinking that is extremely dangerous.
While the initial focus is on cash flow and operating activities, attention must eventually shift toward restructuring the entire financial and operations of the company. This provides the opportunity to restore working capital liquidity for routine operations, make needed capital improvements, and release management to concentrate on achieving operating goals. The result is a more focused company, which is in a better position to compete in the marketplace and service its restructured debt.
A successful reorganization includes the negotiation of existing debt into an appropriate balance of debt and equity from which the company can have the best opportunity for survival and growth. The Turnaround Management Group professionals are skilled at working through the various scenarios available to the company and its creditors and in negotiating a solution that best fits the situation.
In some circumstances, a financial restructuring is not possible and a sale of some or all of the company is required to complete the process of maximizing value. We have over 30 years of experience at finding strategic partners for under-performing companies.
Our exit strategy specialists have created innovative opportunities for the seller and the buyer.
