Depending on the extent of a company’s financial and management woes, a business turnaround may not always be possible. Bill H., a business consultant in NYC, asks: “How do I determine if a distressed business I am being asked to help is just too far gone to save?”
Firstly, if a business is in a downward spiral, it may be best for the company to work with corporate distress professionals who are experts in bankruptcy, restructuring, and bankruptcy alternatives.
As a consultant, you can first ask these questions:
By asking these questions and consulting the right professional teams, you can better determine if a business turnaround is possible.
This 90 Second Lesson is based, in substantial part, in material reprinted from Commercial Bankruptcy Litigation 2d and Strategic Alternatives for and Against Distressed Businesses, with permission of Thomson Reuters. For more information about these publications, please visit www.legalsolutions.com.]
©All Rights Reserved. June, 2021. DailyDACTM, LLC
The editors and editorial board of DailyDAC include preeminent restructuring and insolvency professionals, journalists, and editors. They are devoted to providing reliable and plain English education and deal intelligence about assignments, corporate bankruptcy, receiverships, out-of-court workouts and similar topics.
90 Second Lesson: What Is a Composition Agreement?
90 Second Lesson: What is a “Professional Fee Carve-Out” in Chapter 11?
The Good, the Bad, and the Ugly of Replacing a Debtor’s Management with a Chapter 11 Trustee
Alternative Debtor Management? Discharge Your Fiduciary Duty at $1,155 Per Hour!
How a Distressed Company Can Manage Cash and Stakeholders in a Liquidity Crisis
The Chief Restructuring Officer (CRO): From Restructuring to Stakeholder Management, They Can Do It All
Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page.