|
Survival
is dependent upon successful crisis management, a sound core business and a
capable management team.
The pressures on directors are considerable, help from an experienced
corporate financier may make the difference between collapse and recovery.
|
|
The
demand on a company's internal resources created by financial fire-fighting is
substantial and frequently under-estimated and management may need to call on
"recovery" expertise which is unlikely to be available internally.
|
Corporate
finance are uniquely placed to balance the interests of all parties.
Its role can be summarised as:
-
fire-fighting in the early stages;
-
acting as buffer between business and creditors;
-
formulating the re-financing proposal;
-
negotiating with banks;
-
liaising with regulatory authorities;
-
overall co-ordination and management.
|
Steps
-
the first challenge is to put in place a standstill arrangement
which freezes the position with the bank;
-
develop a new business plan, this will need to be independently reviewed;
-
develop a cash management plan;
-
assess the new money required;
-
assess the scope for equity for debt swaps.
|
Post
completion
-
disposal programme;
-
internal re-organisation.
|
| |
| |