CORPORATE RESTRUCTURING SERVICES
The Crisis Quarterback counsels and advises companies on how to prepare for, manage through, and recover from difficult operational situations arising in the game of business. We offer objective and candid leadership assistance to companies that are underachieving, facing a crisis, or that are otherwise performing well, but have underachieving divisions or subsidiaries.
We can work with you to repair, resize, and reorganize your business’s operational and financial infrastructure, so that you can stay in the game. Although your current executive team understands how to manage and run your day-to-day operations when your business is healthy and growing, maneuvering the field when the game turns against you requires a different set of skills.
The Crisis Quarterback understands that a troubled situation requires focused and dedicated attention on the problems that have arisen. We instill calm and confidence in your team since our only agenda is to help you continue to move the ball down the field. We are able to move quickly to assess the crisis situation, collaborating to prepare a clear game strategy, and then motivating and managing your team by ensuring execution of the plan through shared accountability.
Whether you are the owner, director, creditor, or executive of a company in trouble, or have a legal, tax, or accounting client who is struggling to manage through a business crisis, call The Crisis Quarterback now to discuss how we can help.
Leadership Roles Performed by The Crisis Quarterback
|• Interim Executive (CEO, COO) or Crisis Manager (Chief Restructuring Officer)
• Fiduciary (Chapter 11 CRO, Chapter 7 Liquidating Trustee)
• Independent Director/Board Advisor
"Game Time" Situation Examples
We can help guide your team as they undertake to resolve your company’s debt finance problems, by stepping into a lead role to negotiate on your behalf with your lenders and other creditors to create a sound and balanced plan for future repayments outside of formal bankruptcy or insolvency proceedings. Restructuring a company’s debt requires a holistic view regarding all of the company’s outstanding obligations, along with its current and future cash flow needs, and its prospects for improvement in both the short and long term.
Workouts are inherently complex, largely because of the potential for conflicting interests between and among the company and its creditors, and the intense emotions that arise as a result. It is prudent to have an objective third-party advisor like The Crisis Quarterback to assist in calling and executing the plays when dealing with the financial health of your company.
While there certainly are times when an unexpected internal or external event creates an immediate crisis in the game of business – exactly the time that you definitely need to call The Crisis Quarterback – most troubled companies or divisions have been suffering from sustained negative conditions for an extended period of time, usually until the situation reaches the point at which management or the board must address the need for some sort of corrective measure.
Acknowledgement by the company of the need to attempt a turnaround is merely the first of many potentially difficult, yet crucial, decisions that will need to be made in order to take the necessary actions to stabilize the business, return it to profitability in the near term, and establish a new course of action in the pursuit of long term viability.
Current management may not be willing or able to exercise complete objectivity in undertaking unpopular or unfamiliar actions in order to implement the problem-solving strategy needed to achieve a successful turnaround because of the pressures from internal culture, politics, and legacy relationships. The Crisis Quarterback, as an independent third-party advisor, is experienced in balancing the needs of all constituents that will be impacted by the turnaround, while also communicating honestly, sometimes making observations that other executives are too uncomfortable to make, in order to best manage all the resources available to work through your company’s circumstances.
It also is important to note that, turnaround management and restructuring strategies not only apply to distressed situations, but also can be used very effectively where a company needs a change in its direction, strategy, or methods of working, in order to improve performance. For example, a company struggling with post-merger integration issues or other rapid growth in its business also will benefit from some of the same objective perspective as The Crisis Quarterback provides to troubled companies.
Although the obvious, and most optimistic, long-term objective for a company in need of a turnaround is to return its operations to the path of profitability and viability as quickly and efficiently as possible under the circumstances, sometimes the “right” answer for the business and all of its constituents may be to pursue a transaction where the company is sold, in whole or in part, or even to put a stop to losses by liquidating the company, rather than trying to restructure its operations.
A plan of liquidation may be required either for the remaining assets after a sale transaction where less than all of the company was acquired, or more typically, when a company is insolvent, and is unable to pay its debt obligations to creditors as and when they become due. Often, although not always, a restructuring plan that includes either a partial or total liquidation may involve a federal bankruptcy filing by the company.
Regardless of whether the bankruptcy process is used to liquidate the company, residual business operations are brought to an end, with the company’s remaining assets usually are converted to cash before being divided up among the company’s creditors, according to the size and priority of their respective claims against those assets. The competing interests among the various creditors and the non-ordinary course nature of liquidating businesses necessitate that companies faced with implementing this process bring in The Crisis Quarterback, as an extremely experienced fiduciary who can lead the team and manage the process efficiently from start to finish.
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