Company Turnaround
When companies experience financial difficulties it is very easy for financial institutions to put the company into insolvency or put pressure on it to enter into administration. In doing so their chances of recovery of any overdrafts, loans etc, are minimal. Very often the action is no more than a knee jerk reaction.
We provide an intermediary phase, which could change the final decision and increase the level of recovery.
As soon as it becomes apparent that there are financial difficulties, the financial institutions request our involvement in providing a business review.
The aim of the review is to ascertain: -
- Whether the company can recovery from its difficulties and continues to trade without the aid of additional funds.
- Whether by restructuring the company can continue to trade.
- Whether there is an option for a managed sale of the company.
- Whether there is an option for a managed run down of the company over a period of time, which will enable recovery of outstanding monies.
- Whether the only option available is to close the company through insolvency or administration.
By carrying out this review the probability of enforcing a knee jerk reaction is removed.
Should the review suggest that, with further assistance, the company could continue, we will provide the necessary personnel to achieve the agreed aim of Company Turnaround. This may include accountants, auditors, management, operations advisors, contract advisors, and non-executive chairmen.
We will provide for the financial institutions: -
- Company strategy.
- Business plans.
- Accounts forecasts, short term and long term.
- Structure reviews.
- Credit control reviews.
- Cashflow management.
- Contract reviews.
- Consolidation reviews.
- Disposal procedure and time scales.
- Rundown time scales and associated costs.
The costs for providing the second phase as outlined above are agreed with the company direct, built into the financial forecasts, and paid direct by the company.
We will remain working with the company until the goal is achieved and both parties are satisfied.