When businesses face financial distress, a structured approach is critical to achieving stability and long-term success. Beechwood’s Restructuring & Turnaround Services guide companies through a structured process with a focus on immediate and effective action. The process begins with a rapid Assessment/Stabilization phase to stem cash burn and stabilize operations. This is followed by an Analysis/Identification phase to diagnose core issues and assess the company’s viability. The next phase is Plan Development/Restructuring, where a tailored turnaround strategy is crafted. Finally, the Implement, Strengthen & Exit phase prepares the business for sustained success or a strategic exit.
The following are examples of services Beechwood will typically provide during a Restructuring and Turnaround engagement:
- Take immediate actions to stabilize the business and manage cash burn.
- Establish timely communications with management, secured and unsecured lenders, equity sponsors, counsel, and other stakeholders.
- Take an active role or lead negotiations with stakeholders, including forbearance agreements, credit agreements, leases, vendor terms, purchase and sale agreements, and general contracts.
- Evaluate the short- and long-term viability of the company’s existing business model.
- Evaluate the following exit strategies: turnaround and restructuring, immediate sale of company, short-term performance enhancement to prepare for a sale, or wind-down and closure.
- Assess management, staff, and organizational structure.
- Assess systems, controls, and financial records.
- Perform market analysis to identify trends, opportunities, and threats within the industry.
- Develop useful, reliable, and understandable financial models and forecasts, including a 13-Week Cash Flow Forecast.
- Utilize Business Process Reengineering (BPR) where appropriate to improve operational efficiency and profitability.
- Identify opportunities to enhance profitability through revenue enhancement and cost reductions.
- Tour and assess the company’s facilities and their respective capacities, understanding the real estate aspects of operations, and identify consolidation opportunities.
- Identify and dispose of non-core assets.
- Develop and negotiate financial restructuring plans.
- Evaluate product line, customer, and distribution channel profitability.
- Develop work plans for the execution of strategies.