Assume day to day control of a company’s spending and work to improve management controls over future spending commitments. Using the 13-week cash flow projection as a tool for planned future available cash, negotiate with suppliers to agree upon achievable and realistic future payments. Also identify opportunities to reduce working capital to generate additional cash.Turnaround Plans:
Working collaboratively with senior management, assess company and its options to develop a business and financial plan to restore the company which has a low level of earnings to a reasonable level of profitability in typically a short time frame. Develop mutually agreed key action item list and develop financial models to demonstrate the viability of the turnaround plan. Assist senior management in the presentation of turnaround plan to the Board of Directors, owner(s) and lender(s) to garner support. Most importantly assist senior management in the implementation of the Plan. Regularly track results vs projections and communicate status report regularly to the Board of Directors, owner(s) and lender(s).Debt Restructuring:
Underperforming companies sometimes need more time to allow a turnaround plan to have impact and for the company’s financial performance to improve. This may involve getting short term relief from current loan covenants, getting some principal amortization relief, deferring supply payments that are now due over a longer time frame, or even reducing debt levels with some type of debt for equity exchanges. Debt restructuring always involves difficult negotiations with creditors where it’s invaluable to have an experienced intermediary manage the communication and negotiation.