At Business Capital, we develop and implement detailed financial restructuring plans that address the underlying problems facing a distressed business, rather than simply applying short-term solutions, thereby enhancing the long-term survival of the company. We identify key goals and objectives and formulate a process tailored to the specific needs of our clients.
As part of the restructuring process, it can sometimes be the case that a company is in need of a Chief Restructuring Officer to appease the firm’s lenders. Business Capital can provide a specialist who has a detached perspective on the hard choices that need to be made in order to do the job right.
“Because of Business Capital, we have improved relations with our vendors, invested in new equipment and marketing, and been able to offer better work benefits to our loyal employees.”
- Owner, Printing Co.
The incumbent managers are freed up to run the firms’ day-to-day operations and focus on activities that generate revenue instead of on the fiscal crisis. The CRO dedicates needed attention on a turnaround plan and what must be done to satisfy all involved stakeholders. This ensures the long-term survival of the company, realizes its growth potential and paves the way for new capital to come in.
As part of the process of a restructuring, lenders will frequently influence or even require a troubled company to retain a turnaround professional. A turnaround consultant typically reports to a company’s officers or board of directors and authority is derived from the retention agreement. Often, this type of arrangement is highly productive.
In cases where there is strong difference of opinion regarding the future direction of the company, the lenders might insist that the turnaround professional be in the form of a CRO instead of a consultant. This is because a Chief Restructuring Officer has greater authority to direct the reorganization process from within and also has greater independence over existing management.
At Business Capital, we will meet both the needs of our clients, as well as the lending community. Our CRO services are specifically tailored to each client’s circumstances. We will reduce recovery time and increase profitability. This service compliments our other turnaround offerings for businesses in distress. These services include business debt restructuring, asset based lending, bridge financing and debtor-in-possession financing. Our other offerings can be viewed on our Servicespage.
