We specialize in mapping the course for financially distressed companies and guiding the way to profitability.
Financial troubles are often invisible until the company has a serious cash-flow deficit and/or has violated loan covenants. The associates of Meridian can call upon their depth of management and financial experience in workout situations and determine what actions need to be taken. This assistance can be critical in keeping the troubled company’s focus on serving its customers, while resolving its internal problems.
A turnaround situation demands immediate attention to problems
arising from the client’s customers, creditors, employees or
competitors. The utmost confidentiality must be maintained to
protect the market image of the company throughout this time.
From experience, Meridian understands the effort required to
help a company through the crisis. Our depth of management enables
us to address many problem areas simultaneously.
Meridian specializes in piloting management through all of the stages involved in a workout environment by:
- Analyzing and altering operations to be more cost-efficient
- Developing a restructuring plan that meets the long-term goals of owners and management, while also satisfying the short-term needs of creditor groups. This stage requires an in-depth analysis of asset utilization, current cash flow demands, and future cash flow needs for funding day-to-day operations as well as capital expenditures
- Negotiating with various creditor groups to gain support for the continued operation of the company
- Reconfiguring the debt of the company to minimize cash required for servicing the debt, and redirecting cash flow to company operations during the reorganization phase
- If necessary, replacing existing creditors with debt from financial institutions that specialize in financing for troubled companies
- Assisting management in meeting goals defined in the plan and agreed to by all concerned parties. This stage often involves the sale of divisions, subsidiaries or other assets to improve the liquidity of the company
For more information on turnaround strategies, please see White Papers.
Past Journeys - Performance Improvement/Restructuring
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