Turnarounds & Workouts


BUSINESS PERFORMANCE IMPROVEMENT

Bella Carlo provides talents and skills on business performance improvement because this represents opportunities to "re-start" a firm that has fallen on hard times for many (whatever) reasons. We review the situation and then work with the client to re-start the business.

Key Benefits of a Turnaround Plan

  • Stability and continued operations
  • Accelerate return to profitability
  • Secure rescue capital
  • Minimize costs of current crisis

Zone of Insolvency

When an organization is in decline most often management waits too long to call for professional help. Management soon encounters pressures that it is ill prepared to face on its own.

  • Pressure from creditors
  • Cash-flow problems and missed obligations
  • Departures of key personnel
  • Problems with alliance partners
  • Eroding market presence and goodwill
  • Entry or near-entry to 'death spiral'
  • Frantic search for help, and, if it is not forthcoming, then
  • Slow fragmentation and dissolution of the company

This stage of decline is known as the zone of insolvency. The zone of insolvency entails a different set of legal responsibilities for corporate management and for boards of directors. Recovering from this decline requires a completely different set of skills and perspectives than does managing the same organization in healthier times.

Turnaround Management Process

Bella Carlo's turnaround-management service uses tools to bring about the renewal of client’s organizations:

  • Starting with a turnaround plan and implementation of the plan
  • Finding and negotiating new investors
  • Finding lenders who specialize in distressed debt
  • Accelerating sales and receivables
  • Planning and execution of optimal exit strategies

Bella Carlo has the skills and experience to restore companies to viability and to a position of stability and growth. Bella Carlo’s engagements follow a proven cycle of renewal and restoration.

  • Stop losses
  • Manage positive communication with employees, creditors and stakeholders
  • Restructure finances
  • Negotiate with creditors
  • Attract new investment
  • Remove burdens on profitability
  • Focus on organizational value

While it is common to cite the lack of cash as the obvious cause of the crises, there are almost always critical problems at the root of a company's decline or crisis. When the solutions to a decline or crisis go beyond financial workout, Bella Carlo has a multi-disciplined team of professionals who have the experience to address issues of:

  • Operations efficiency
  • Quality
  • Marketing and sales
  • Financial management
  • Corporate communications

Turnaround is not always the best option. Not all companies are viable in their current form. Our turnaround professionals have the ability to make unbiased analyses and recommendations on the viability of client organizations and on their options for the future. Companies in crisis have a number of specific options open.

Solutions

Positives

Negatives

Operational Restructuring

Retains Control

Risky: May be Short Term Undercapitalized/Crisis Mode

New Financing
Equity/Debt/Hybrid

Keeps Company Alive

Difficult to Obtain
Significant Dilution

Divestiture
Sale of Stock

Liquidity

Change of Control
Buyer Concerned with Company Liabilities

Restructuring/Asset Sale
Out of Court

Quick Transaction
More Control than Chapter 11

Concerns about Successor Liabilities
Nontransferable Leases/Contracts

Restructuring/Asset Sale
In Court

Liquidity - Buyer Assured by Court Order
Can Transfer Leases/Contracts/Licenses

Lengthy, Expensive and Uncertain Outcome

To learn more about how Bella Carlo's turnaround-management service can help you negotiate your options, we invite you to consider our offer of a review of your business. We will spend the necessary time with you to access the challenges facing your organization and identify plans of action to:

  • Resolve Creditor Problems
  • Negotiate Contract Issues
  • Create Credible Reorganization Plans
  • Return to profitability

Bella Carlo is in the business-renewal or re-start business.  Please call Mark A. Parreira at 916-600-7454 or email him at markp@bellacarlo.com for assistance. Thank you.