Serious
mistakes are usually made while businesses are still profitable.
Failing to secure financing which can be maintained in the long-term, using unrealistic financial projections or delaying optimisation of working capital and superfluous assets may lead to serious consequences.
Companies which, for whatever reason, lose their profitability, are often in the difficult situation of not being able to implement new projects. Banks will soon be talking a slightly different language as borrowers.
Quick action will then be overdue: securing and managing liquidity and financing, improving profitability and conserving value. Strategic and operating measures to improve earning power should be defined and implemented by those who know and will lead the business in the future.
However, they usually get absorbed in fighting symptoms. In such situations it is often useful to involve experienced specialists to take urgent financial measures and demonstrate to the lenders the eligibility for financing of individual businesses and projects.
A third party may also be useful to mediate between the borrower and lender convergent solutions acceptable to both parties when negotiations are getting nowhere, or to arrange adequate alternative refinancing through different financing instruments.
Measures to streamline assets are often not core competencies of the companies which have failed to do this. These might include the divestiture of properties and non-strategic business areas.
Please read the legal information before proceeding.
© 2008 Daniel H. Brüllmann - All rights reserved.
Failing to secure financing which can be maintained in the long-term, using unrealistic financial projections or delaying optimisation of working capital and superfluous assets may lead to serious consequences.
Companies which, for whatever reason, lose their profitability, are often in the difficult situation of not being able to implement new projects. Banks will soon be talking a slightly different language as borrowers.
Quick action will then be overdue: securing and managing liquidity and financing, improving profitability and conserving value. Strategic and operating measures to improve earning power should be defined and implemented by those who know and will lead the business in the future.
However, they usually get absorbed in fighting symptoms. In such situations it is often useful to involve experienced specialists to take urgent financial measures and demonstrate to the lenders the eligibility for financing of individual businesses and projects.
A third party may also be useful to mediate between the borrower and lender convergent solutions acceptable to both parties when negotiations are getting nowhere, or to arrange adequate alternative refinancing through different financing instruments.
Measures to streamline assets are often not core competencies of the companies which have failed to do this. These might include the divestiture of properties and non-strategic business areas.
Please read the legal information before proceeding.
© 2008 Daniel H. Brüllmann - All rights reserved.