Turnarounds and Reorganizations
The Business Turnaround
Finding competent counsel when your business is struggling is critical. GuideSource understands their responsibility: your business must be pointed in the right direction and it must be pointed quickly. You know your business like no one else can. GuideSource knows how to turn it around.
When you have one or a handful of creditors threatening to disrupt your business, you need resolution and you need it now. GuideSource has the expertise in conflict resolution to set up terms that both you and your creditors can live with.
Chapter 11 Reorganization
Do you have difficulty seeing a solution with creditors that will allow your business to survive? Before you decide to pursue reorganization in bankruptcy, call GuideSource. We can discuss the benefits and difficulties your business might encounter in Chapter 11 Bankruptcy.
1. Distractions and interruptions caused by creditors. These can divert the attention of business managers from their most important task. They need to fix what’s broken and they need to fix it fast!
2. The business owner loses credibility. When a business is struggling, creditors blame the leaders of that business first. They lose trust in the management of the company. Bringing in an outside party experienced in business turnarounds sends a clear but simple message to creditors: we’re serious about fixing our problems.
3. The leaders of a business don’t understand the challenges facing the creditor. Often when a creditor says no to a workout proposal, it’s not because they don’t believe it’s a good proposal. Many times they say no because they can’t get their own creditors (Banks, Investors, etc.) to say yes. Bringing in an outsider who understands how to frame proposals so that they can satisfy a creditor’s creditor can be very useful. Often times business leaders don’t possess the specialized expertise to do this effectively.
4. Business owners can deceive themselves. Anyone can deceive themselves. Fixing the root cause of a business’ problems is critical to a turnaround. Identifying the real root cause as opposed to a symptom or consequence of that root cause can be deceiving and difficult. You can expend precious resources and accomplish nothing. Guidesource can help. We can objectively analyze the root cause of a problem, and that is critical to fixing that problem.