A weekly cash flow analysis is one of the most basic business tools, yet Marjorie Kaufman observes many businesses fail to utilize it. She explains why this vital analysis should be a “best practice” to keep every business nimble and adaptable to changes in liquidity.
While lenders carefully scrutinize companies seeking to borrow money, borrowers rarely exercise the same due diligence to screen potential lenders. No one embarks on a business venture planning to fail, but it does happen. Bayard Hollingsworth advises borrowers to investigate the ways lenders handle a deal that goes wrong before accepting other people’s money.
Loan Losses and a Lender’s Stages of Grief: How Turnaround Pros Can Guide Lenders from Depression to Resolution
Now and then, despite due diligence and careful underwriting, a loan goes bad. Patrick Walsh describes the five stages of grief that a lender passes through when a loss seems imminent and suggests ways that a turnaround professional can help the lender work through these stages and achieve a positive outcome.
The initial stages of a turnaround can be chaotic for both the consultant and the stakeholders. Establishing a communications protocol at the start of the engagement can create an orderly process that keeps everyone updated in a timely fashion. Patrick Walsh provides a protocol and explains how management, lenders and the consultant will benefit from using it.
Economic uncertainty has traditionally been good for turnaround professionals. But the game has changed, and unregulated lenders can call a different tune. Howard Brod Brownstein looks into his crystal ball and predicts a mixed bag for turnaround pros under the new administration.
In an excerpt from their book, Transformation: Delivering and Sustaining Breakthrough Performance, Boston Consulting Group’s Lars Fæste, Jochen Schoenfelder, Christian Brub and Christoph Lay discuss the essential steps needed to create a transformational turnaround and restructuring effort.
Even lenders who exercise the most thorough due diligence sometimes have to exit their loans. Turnaround specialist Ken Mann offers tips to help lenders make smart decisions in 2017.
Kelley A. McLaren and Luis Lluberas were part of the team that brought Bost Distributing back to financial viability, arranged for a sale and rebranding and saved the jobs of more than 50 workers. For their efforts, the TMA honored the team with the Small Company Turnaround of the Year award. McLaren and Lluberas offer five steps for a successful turnaround that can be applicable to all companies, large or small.
Using collateral instead of future cash flow may be in the lender’s best interest when underwriting a term loan. Joe Upson and Ken Mann explain how to evaluate when it is best to use collateral and what types of assets are safest for a lender to use.
As the price of oil continues its downward spiral, energy companies need to retrench and retract. Monty Kehl and Dennis Ulak of Huron Business Advisory provide a road map for survival.