the process of a turnaround
Absence of liquidity is the prime driver of bankruptcy
Phase I – Assessment
Stakeholders are identified and a preliminary risk assessment is assigned. A preliminary valuation analysis is performed to determine whether there is an entity to save or whether liquidation is the best path.
Timetable: within 30 days
Phase II – Resource Assessment and Stabilization
Stop any attack on the business especially cash/cash related sources. Communicate with stakeholders, especially bankers, to gain time. Stop losses and limit the demands on cash. Identify all liquid resources to cover the assessment phase (normally 90 to 120 days).
Timetable: 30 to 60 days
Phase III – Financial /Enterprise Analysis
Complete financial/managerial analysis answering: what, how and why. Forecasting is performed using objective data. Preliminary rescue needs developed. Continue interactive communication with all
Timetable: 90 to 150 days (depends on complexity and size of business)
Phase IV – Stakeholder Assessment
All stakeholders are assessed and reassured. Stakeholders include: creditors (banks, trade suppliers, taxing authorities, etc.), employees, customers, management, families of each, insurance carriers, other professional service providers, shareholders.
Timetable: Runs parallel with analysis phase.
Phase V – Turnaround Plan and Timing
After a run rate plan with needs analysis is prepared, a formal rescue plan is developed with key metrics to determine success. A timetable for recovery is prepared using stakeholder input. Priorities for payments and cash usage is determined. New stakeholders are sought.
Timetable: Within 60 days following analysis and stakeholder assessment.
Phase VI – Financial Strengthening
Using the plan, assure stakeholders business is now stabilized. Strengthen and grow business within resources. Search out new sources of capital and cash resources.
Timetable: defined in plan
managing trouble – getting and giving
What do you get?
With turnaround projects, what you get is rather simple: assessing the situation, stopping the immediate threat, developing a plan and fixing the problems.
All of these processes are customarily done in a very short period of time. Normally the first 60-90 days are very intensive as lenders and other creditors and stakeholders may be applying pressure.
In most cases we lead the financial management of the company and negotiate with outside creditors and lenders many times needing to find new lending sources.
What do you give
..and what will it cost
Turnaround work for troubled companies is very expensive, very intense and very time consuming. Normally the work is done on an hourly basis, but a payment plan can be negotiated with the use of cash and phantom stock since cash is likely,
what a business is lacking in these situations.
Turnaround for companies that have financial trouble, but have sufficient cash and capital usually cost less since the intensity and timing issues are not as pressing.
Most companies use the hourly payment option. In all cases, a retainer or suitable level of phantom stock is required.
fill out the information sheet
Click the box under Getting Started, a fill in PDF form will pop up. This form cannot be saved on a computer so when complete, use the print to PDF/Save to PDF option. This will save the form on your computer that can then be attached to an email. Send form to our secure email: tksheehan@sheehanfinancial.com .
review
We will review your information sheet. If agreeable, you will receive a link to our secure document portal to upload documents.
finalize relationship and proceed
Once documents are reviewed and we agree to proceed, you will receive service documents, payment instructions and follow up plan with timetable.