Is your company in need of management turnaround?

In today's day and age, management turnarounds are in high demand. Many Companies are faced with issues of competition, shrinking markets, and frankly mis-managed. We specialize in workouts. Establishing a course of action, then, implementing it to revive and invigorate the once thriving company back to fiscal health. So, what's involved in a management turnaround?

Corporate workouts and corporate restructuring of Avistar Business Advisors are usually performed or directed by H. Baker & S. Fox the corporate partners.

Our services are directed primarily at stakeholders, owners, CEO’s and members of boards of companies that are in serious trouble. We have seen interest from prospective investors contemplating the purchase of a troubled company and creditors who hold non or under-performing and un- or under-secured loans.

I can’t emphasize enough that restoring credibility and actual profit are keys to achieving success in most cases, and definitely in all difficult ones. There are some exceptions to this rule. The largest exception is if the company is too far gone to achieve restoration. For example, most creditors are likely to agree to debt restructuring if they believe the company will make the profits necessary to repay the debts, wholly or in part in installments. Or that it will receive an investment with which it will repay its creditors. Before overall debt restructuring is undertaken, vendors, lenders and tax authorities will usually issue forbearances if they really believe what the debtor is telling them. To build such trust, written disclosure is required. However, most business executives purposely shy away from disclosing their company’s weaknesses. What they don’t realize is that honest bad news is a very effective tool in dealing with creditors, because at the base of a good restructuring plan is a consensus of the debtor and its creditors concerning the company’s alternatives.

These alternatives need to be presented properly and important subtleties must be observed in how confidential information is disclosed and in laying out the alternatives, specifically concerning the expected realization by creditors in the event of informal restructuring as compared with Chapter 11 or other legal reorganization methods. In these matters restructuring expertise is essential.

Debt restructuring can be achieved informally or under Chapter 11 by an expert in negotiation of one or more proposals that would as an example, reduce the principal owed or payments previously fixed, and or delay said payments, and or modify or reduce creditors’ security.

Buying time with disappointed and irate creditors and negotiating with them to restructure the debts is only part of the solution. All major problems that have gotten the company into trouble must be cured, if the future is going to be successful. Usually, several problems are present once. Some of these issues mask others, and therefore management is often aware of only some of these problems. Yet all key problems must be diagnosed rapidly, and practical and credible cures must be implemented, or at least conceived, early on in a turnaround.

In the process of establishing a basis on which to engage a management turnaround, we will evaluate a company as to the "success" factor we may have. If we find an environment or a culture that is outside of our comfort level, we will defer the engagement. We have had great success with helping clients who are motivated to engage our process. We will not engage companies that don't have the proper motivation for change.