Turnaround & Restructuring Advisory

Vantage Point provides objective financial advisory services designed to proactively assist companies operating under various levels of duress. With a focus on quickly understanding the key issues, we work with owners and senior management to develop dynamic cash forecasts as the basis for managing any immediate liquidity constraints and beginning the complex debt restructuring process. Our experience indicates that delay on the front end typically only leads to fewer options available with less time and capital available to pursue them. Please click on any of the services listed below to learn more.

Cash Flow Management

The first priority of almost all restructuring efforts is to understand the cash flows of the business. What are the Company’s primary sources and uses of cash? How does the flow of cash into and out of the business affect working capital and other covenants used by lenders to monitor the business? How can my business show a positive net income and simultaneously risk not having the cash or the availability necessary to finance the ongoing working capital requirements?

Despite the industry, a detailed understanding of and ability to manage cash is critical to executing a successful turnaround. Vantage Point advises companies on how to more accurately project and better understand the true cash flow generating capacity of their business. This analysis is critical for the purpose of convincing creditors to provide the additional time typically required to explore longer term strategies.

Interim Management

Peter Colmer and Mark Smith have both taken senior level positions in multiple situations including CRO, CEO and CFO with complete control over the Company’s finances. Other times, we may simply be called on to serve as an extension of the existing management team. Despite the situation, Vantage Point has the expertise to help companies objectively evaluate their various options and manage the design and implementation of any turnaround plan.

Crisis Management

Vantage Point advises middle market companies operating in a crisis situation. Take for example the story of the company who had one of its larger customers file for bankruptcy. This filing caused the Company’s secured lender to define any receivable due from the now defunct entity as “ineligible”. The Company that was previously in full compliance with its loan agreement was now “over-advanced” and at risk of not having access to the capital needed to fund key operating expenses of the business. In certain scenarios this type of situation may result in an inability to fund payroll.

Vantage Point advisors are skilled at quickly understanding the key aspects of these types of situations so that we can move quickly to stabilize the situation and help insure that key relationships remain intact. Consistent communication with key creditors is often critical.

Contingency Planning

We strongly encourage our clients to produce contingency plans. The first reason is due to the fact that lenders will typically expect management to have considered all potential outcomes including liquidation. The second reason is due to the fact that even the most well thought out and designed plan will most likely experience some bumps along the way. Events happen fast and advance planning is critical to responding appropriately.

Vantage Point produces dynamic projections that allow for the modeling of a wide variety of key assumptions. We adjust our thinking as events on the ground demand. In addition to providing management with a key operating tool, the process of objectively evaluating all options shows creditors that management is in fact in charge of the situation and proactively thinking through all available options.

Creditor Communications and Negotiations

Effectively communicating with key creditors is a critical aspect to the successful implementation of any restructuring plan. Lenders need to fully understand and “buy-in” to the plan before they will agree to finance its execution, and aside from other sources of capital, your lender will play a critical role in the process.

Vantage Point has extensive experience communicating and negotiating with various creditor constituencies. Both secured and unsecured creditors play a role, and it is generally in management’s best interest to educate the key entities as to why the proposed turnaround plan is ultimately in their best interest.

Fixed Asset Validation

A full review and understanding of a company’s fixed assets is also a critical component of any well-designed restructuring plan. Working closely with management, Vantage Point advisors are experienced at helping to quickly identify and liquidate non-core assets whose disposal may generate the cash necessary to fund other more pressing needs.

Post Restructuring / Longer Term Strategy

Subsequent containment of any event-driven crisis, management teams often require assistance in order to maximize the probability that the previous crisis will not be repeated. Longer term projections are designed to help you better understand and develop the necessary strategies to help insure that the Company’s capital structure is appropriate for your longer term business objectives.

Similar to shorter term cash flow forecasts, Vantage Point advisors are also highly experienced in the generation of longer term plans that dynamically allow for changes in the key assumptions involved.