Corporate Restructuring and Turnaround Services
Professional Advice and Strategic Leadership for Companies in Financial Distress
When a business experiences a financial crisis or is underperforming, level-headed thinking and confident action are essential. Stakeholders, partners, and employees are counting on the company’s success. Stabilizing the situation and keeping the firm functional while developing long-term solutions is key. Yet, that can be difficult when management feels stressed or lacks the necessary skills or time. That’s why professional corporate restructuring and turnaround services are so important.
At The CEO’s Right Hand, we specialize in working with small-to-mid-sized growth companies, and unfortunately, we see such situations frequently. When businesses change or begin to grow and scale, existing capabilities can reach a breaking point, putting essential functions at risk of spinning out of control. Our experts can pinpoint the problem areas and collaborate with you on a plan for addressing them, getting the company back on track, and moving forward from a position of strength. Below are a few ways we can help.
Financial Crisis
Management
Businesses experiencing cash flow, creditor, or supply chain issues need immediate solutions. We quickly review your circumstances and recommend actions to stabilize the situation – buying you time to think.
Debt
Restructuring
Unwieldy debt can eat away at your working capital, making it challenging to function. We examine your maturity profile, interest rates, and accounting practices to find and explore restructuring opportunities.
Capital Structure
Optimization
Imbalanced capital structures create financial risk and inefficiencies. We optimize your balance of debt and equity via financial restructuring, reducing the cost of capital, enhancing economic stability, and boosting company value.
Organizational
Restructuring
Inefficient business practices, procedures, and internal structures can cause bottlenecks, increasing operating costs and reducing profit margins. We help you spot the problem areas and optimize resources.
Turnaround
Management
Distressed companies need creative solutions to revitalize and restore financial health and operational efficiency. We partner with you to diagnose the issues, propose options, and ease implementation.
In and Out-of-Court
Solutions
Formal bankruptcy proceedings are costly, time-consuming, and risky. We prepare you for that possibility while striving to avoid it by negotiating better arrangements with creditors on your behalf.
Other business turnaround and restructuring services include operational restructuring, cash flow forecasting and issue resolution, financial modeling and reporting, interim management placements, and exit strategy development.
What to Expect from a Business Restructuring Service
Our goal with every corporate restructuring engagement is to turn the business around while avoiding unnecessary disruptions or costs. When companies fail, people lose their jobs, creditors lose money, products or services exit the market, and entrepreneurial dreams go unrealized. We want to circumvent that by restructuring your organization to make it stronger. The ideal result is a financially viable business poised to grow, thrive, and deliver sustainable value.
Building your company restructuring team is the first step. We review your financial records, share our initial recommendations, and then work with you to create a holistic and comprehensive corporate restructuring strategy that meets key criteria. The restructuring process typically includes many steps, such as renegotiating debt and equity arrangements with creditors and investors, bolstering financial infrastructures, resolving operational challenges, and managing staffing issues. Therefore, once you approve the plan, we also help implement it.
At The CEO’s Right Hand, we offer a full range of strategic, financial, and operational services. We’ve built and sold our own companies, so we know what it takes to construct a desirable business and what it’s like to be in your shoes. Our services work together to help your organization move forward.
Schedule a free consultation today to learn more.
Frequently Asked Questions (FAQs)
How do I know I need corporate restructuring services?
We’re glad you asked because, too often, companies don’t reach out until something breaks and becomes an emergency. That can lead to costly issues that are difficult to unravel. Outcomes are typically better and easier to attain for those who educate themselves on the warning signs and involve us early. Here are a few things to watch for.
- Significant business changes (i.e., a new owner, sudden revenue growth or decline, or a hiring spree).
- Significant changes to accounts receivable or accounts payable terms, aging, etc.
- Cash flow concerns (i.e., Are you confident you can make payroll? Do you have enough cash to fund operations for the next six months?)
- Capital infusions, such as borrowing money via debt or equity without a clear repayment plan.
If you recognize your business in any of these examples, reach out today for a free consultation.
What are the benefits of professional restructuring and turnaround strategies?
When a company is distressed, emotions can get in the way of sound decision-making. Working with a professional provides you with much-needed expertise and an emotional buffer. It makes it easier to do things like the following.
- Objectively review your financial and operational circumstances.
- Identify opportunities and risks.
- Craft an optimal turnaround plan.
- Entertain creative or “out-of-the-box” solutions like strategic alliances and joint ventures.
- Renegotiate contracts with lenders and vendors.
- Communicate with employees, investors, and other key stakeholders.
Although you might know this work is necessary and that change must occur, it is common to experience some resistance. Working with an objective third party that you trust can help.
How much do corporate restructuring services cost?
Corporate restructuring experts are typically fractional CFOs who specialize in helping companies experiencing economic distress. Fractional CFOs usually charge by the hour or day, with rates averaging around $325-$425 an hour. That is a small price for someone who could save your company. They will help you develop the financial and operational efficiencies necessary to navigate rough waters, avoid legal proceedings (and lawyer fees), and, ultimately, strengthen your organization so it can grow and thrive.
Are there different types of restructuring?
Yes. A turnaround typically involves several types of corporate restructuring, including operational, organizational, and debt restructuring. The right mix for you will depend on your circumstances. A good provider will review your situation holistically and make recommendations.
Can you help me file for bankruptcy?
Our advisors can help you develop a plan that will allow you to navigate your situation both in and out of court. Out-of-court restructurings are generally preferable, but formal bankruptcy proceedings can be useful in some cases. If that is true for your organization, we can connect you with a lawyer to handle the legalities.
