Financial Restructuring

FINANCIAL RESTRUCTURING

When a company gets into financial trouble, the balance sheet usually deteriorates quickly resulting in unsustainable debt. The financial ratios are not aligned with industry norms. Because of the ratios being out of balance, any bank can become nervous, and other lenders may not be willing to participate. The consequences from several months of cumulative losses can take its toll on any balance sheet and cash flow. Other issues might have developed such as aging accounts receivable and excessive levels of inventory. All of these situations can drain your business of the cash you need to operate properly. We identify these issues, establish a realistic corrective action plan and execute the plan with you. Here are a few balance sheet issues we focus attention on:

  • Balance Sheet Ratios (Industry Specific)
  • Accounts receivable aging
  • Inventory size, turnover and obsolescence
  • Accounts payable aging
  • Bank loan restructuring possibilities
  • Capital and operating lease restructuring options

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