Turnaround Management - Corporate Renewal

Turnaround Management is the business of Corporate Renewal. Ironwood Advisory's turnaround managers have the knowledge and capacity to make the tough decisions and marshal the resources necessary to save employee's jobs and protect the assets of their client organizations.

Turnaround Key Benefits

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

Power Point Presentation on Transition Management

Zone of Insolvency

When an organization is in decline, most often management waits too long to call in professional help. The 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
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

Ironwood Advisory's Turnaround Management Service uses specialized tools to bring about the renewal of client organizations: ·

Leverage of the Bankruptcy code in dealing with creditors
Finding and negotiating new investors
Finding lenders who specialize in distressed debt
Sales and receivables acceleration
Workout plans and implementations
Planning and execution of optimal exit strategies

Ironwood Advisory has the renewal skills and experience to restore companies to viability and a position of stability and growth. Ironwood Advisory Turnaround Management engagements follow a proven cycle of renewal and restoration.

Staunch 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, Ironwood Advisory has a multi-disciplined team of professionals who have the experience to successfully address issues of:

Operations efficiency
Quality Issues
Marketing Issues
Financial Management
Corporate communications dysfunction

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 Ironwood Advisory's Turnaround Management Service can help you to negotiate all of these options, please contact us. We invite you to consider our offer of a complimentary Business Review. We will spend the necessary time with you to access the challenges facing your organization and to identify plans of action to: ·

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

Ironwood is in the business renewal business.