A prior post on informal creditor negotiations prompted an interesting point of view from Mark Wilk, a reader and a friend. I can’t think of anyone in the country that sees and finances more troubled businesses than Mark and his team at Callidus. So, his perspective on turnarounds is incredibly important.
Mark comments on the importance of professional advisors in the turnaround process and the likelihood that the skills of the management team do not extend to restructuring and other imperatives of a troubled situation.
Here is another consideration: financial difficulties are all consuming of a management team’s hours, thinking and stress. The result is a significant lack of focus on what really matters – creating and selling the product or service.
It is difficult for entrepreneurs to let go of a life and death situation, with their business and personal guarantees on the line. But, when the company is in trouble, the right solution is for key producers to focus less on the trouble and more on core profit producing activities. Hire professionals to handle the rest.
Posted by Scott Sinclair, Range Corporate Advisors
Our passion is to support business owners in pursuit of their dreams.
We believe that for professional advice to be truly valuable to medium, small and entrepreneurial businesses, the adviser’s professional skills must be world-class, the adviser must participate in the effective execution of the solution and the advice must be affordable by the business. With this, these businesses can overcome all challenges.