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When reorganizing, a company must accommodate the conflicting demands of competing stakeholders while preserving and building its business value. Leveraging years of experience, Barrier Advisors has a full range of solutions that maximize economic outcomes for a diverse set of stakeholders in a timely manner.
In many cases, the distressed company has experienced a combination of operational, financial, or other external issues. By understanding the underlying drivers of a company’s current condition, the company and its creditors can better assess their options to maximize recovery. Barrier Advisors will help you understand the drivers affecting your situation so that you can make the right decisions.
Restructuring is not about turning back the company’s clock to before its problems began—it’s about moving forward to realize the potential your company has always had.
Cash flow management, communications management, operational and financial analysis and operational improvements—all these elements are critical to improving the situation of a company facing a potential bankruptcy filing or restructuring.
When a business’ situation is critical, the quality of the advice it seeks in response to the situation is critical, as well. That’s where we come in. For companies facing high debt levels, potential bankruptcy or restructuring, Barrier Advisors provides: (i) a clarifying methodology on which to base decisions, and (ii) services that focus on reversing problematic trends.
A majority of distressed companies have limited liquidity and a capital structure with too much debt in light of the company’s current performance. So, while the initial focus of a financial restructuring is on cash flow and strengthening financial performance, attention must eventually shift toward restructuring the balance sheet. In the short term, that means stability and recovery. In the long term, it means the ability to pursue and achieve long-term objectives.
Barrier Advisors assists management through a four-step financial engineering process:
- Stabilizing the financial crisis
- Assessing the financial performance and debt
capacities
- Developing reorganization plans
- Implementing solutions
Our approach restores working capital for routine operations, initiates capital improvements and frees up management to concentrate on achieving operating goals. The result is a streamlined, right-sized organization that is in a better position to compete in the marketplace and service its capital structure, now and in the future.
Money is important, and so is information— the more accurate and timely that information is, the more it is worth.
When lending to a company that is in a workout or is underperforming and in need of covenant relief, there are a couple of questions that need to be answered: Can the company be made profitable? If so, at what cost?
To find these answers, creditors need reliable, fact-based analysis from a third-party they can trust. This analysis requires more than just data gathering; it requires interpretation of the financial and operational road signs by seasoned professionals. As your third-party interface, Barrier Advisors provides a focused evaluation that clearly outlines the business’ problems, opportunities, and its likelihood of meeting debt-service obligations.
Barrier Advisors offers a variety of services tailored to meet the needs of lenders and creditors. These include assessment of a company’s management team, enterprise and liquidation valuations, debt capacity assessments, evaluation of restructuring plans, negotiation of key agreements, bankruptcy advisory and due diligence. In all cases, we gather and analyze operational and financial information to accurately assess the present situation and future prospects of the business. We provide these services in both out-of-court restructurings and in bankruptcy.
Distressed M&A engagements have unique characteristics and differ significantly from traditional M&A assignments. With that in mind, we employ solutions that stress urgency, an endgame strategy and decisive action—all with the goal of commanding the highest possible price and maximizing negotiating leverage for the seller. Barrier Advisors applies specialized knowledge, leadership, communication and focused execution to meet clear and realistic expectations for distressed assets/businesses.
For more information on Barrier Advisors' M&A capabilities, click here.
Wind-down services require organization and a grasp of detail that supports a comprehensive plan to address the timing, budget and procedural requirements of the estate. The wind-down plan forms the benchmark used to measure performance and maximize recovery. With its disciplined and methodical approach, Barrier Advisors identifies the salient issues and opportunities for higher and better outcomes, while managing downside risks and the expectations of key stakeholders through open lines of communication. All aspects of the process, from the skilled liquidation of tangible and intangible assets and negotiation of liability reductions to the distribution of cash, are continually reassessed by Barrier Advisors to ensure that only prudent disbursements are made.
Disputes can divide companies, interrupt operations, cost money and prevent the achievement of business goals. It is in the interests of all concerned to resolve disputes quickly and prudently. Often the best way to facilitate that resolution is to solicit an outside perspective.
Barrier Advisors assists in difficult and contentious situations by providing expertise in a wide range of disputes, including:
- Bankruptcy
- Valuation
- Business interruption
- Post-acquisition disputes
- Breach of fiduciary duty
- Avoidance actions
We leave the hypothetical in the textbooks and bring practical experience to bear on your dispute matters.
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