YOUR COMPANY IS LOOKING FOR TURNAROUND FINANCE!
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Turnaround finance solutions in Canada will almost always mandate ' ch changes ' in how a business is and will be financed. While David Bowie probably wasn't thinking about company restructuring financing when he wrote his iconic song, it's safe to say that ' change ' is something business owners in challenging situations must address. Let's dig in.
LOOKING FOR HELP IN ADDRESSING HOW TO MANAGE YOUR FINANCIAL TURNAROUND
Financing solutions for ' turnarounds ' in corporate finance have the ability to be both complex and simple, requiring knowledge, experience and the ability to access financial resources that augment the turnaround. The goal is almost always the same - avoid bankruptcy, maximize the value of the assets of the business, and in some manner ensuring the long-term viability of your company. Bottom line, it’s all about addressing the various constituents - owners, creditors, suppliers, employees.
OTHER ISSUES TO CONSIDER IN TURNAROUNDS
While we're focusing on key financing issues such as debt restructuring, other items need to be addressed- i.e.
Sales growth,
Employee issues,
Cost reduction,
All of those, and others, necessitate ' ch changes'! In many cases, the type of industry you are in will often necessitate change required.
DISTRESSED DEBT & DISTRESSED ASSETS -NOW IS THE TIME FOR THE FIX & FINANCIAL DUE DILIGENCE
Assets and collateral are often at the heart of any turnaround finance for the management team. If not addressed with the right financing solutions, the perception of reality is that assets can lose their value in challenging times. The ability to leverage those into a proper finance solution is key. Unfortunately, items such as ' goodwill ' and ‘R&D' don’t play well into current and immediate fix requirements. In some cases, they might need to be written down or curtailed respectively.
ASSET BASED LENDING IS A KEY SOLUTION TO RESTRUCTURING YOUR BUSINESS SUCCESSFULLY
One of the best solutions that are somewhat all-inclusive and a one-stop fix is the ' ABL ' - the Asset Based Loan. Whether term or operating in nature, it rounds up receivables and inventory (operating) and equipment and real estate (term) assets and monetizes them into one facility. Almost always, it takes our current secured creditors and banks - while often injecting more capital into the business immediately. It allows owners and financial managers to address what the pros call the ' capital structure ' of your business in a temporary fixed manner.
RESTRUCTURE SOLUTIONS
While fewer ' traditional ' finance options exist in turnarounds, those that can address your creditor issues.
Other company restructuring solutions include:
Bridge loans
Sale Leasebacks
Mezzanine / Cash Flow financing
Any solution we have mentioned allows the business to self-correct some of those key issues around financial ratios, covenants, owners guarantee liability, etc.
4 KEY ITEMS IN YOUR FINANCIAL TURNAROUND
What is the focus of a financial turnaround? Key requirements include:
- A strong and realistic cash flow forecast - (strong A/R and a/p analysis)
- understanding current liquidity
- balance sheet /working capital ratio analysis
- profit /margin analysis
The best situations in turnaround often show that the company itself has a lot of long-term potential; it’s just all about correcting the present balance sheet - in effect, a ' makeover' is required!
CONCLUSION
There are several financial tools required in a turnaround and troubled company situation. Timing is everything in refinancing under restructuring - it's all about stopping the negative cascade of events and perceptions. One top expert referred to him as halting the ' melting ice cube '!
Accessing turnaround finance requires credibility and expertise for a small business turnaround. Seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you in restructuring financing that helps ensure the fix. Let our team be your restructuring advisor at a time when you need a company turnaround in business most, allowing you to get back to your growth finance strategy.
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Stan Prokop
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