services for distressed companies
Distressed businesses rarely generate sufficient cash flow to meet all immediate demands and cash management can become a time consuming, and often frustrating, process. The input of operating management is critical to an effective cash management program, however, day-to-day management of operations generally requires an elevated level of focus precluding full involve-ment in the cash management process.
Pivotal Strategies' professionals have often been called upon to coordinate the ongoing, day-to-day cash management challenges for distressed businesses. Our cash management activities generally encompass:
· Prepare realistic short and intermediate term forecasts of receipts, disbursements and borrowing availability
· Work with purchasing and operating management to prioritize and rationalize the order of cash requirements against forecasted availability
· Manage communications with suppliers; negotiate extended terms and credit limits
· Seek additional sources of cash such as sale of excess inventory and/or under-utilized assets, new working capital financing, temporary lender over-advances, etc.
· Negotiate with customers to accelerate payment and/or restructure terms
Our ability to effectively manage our clients' cash flow maintains the value of the business while leaving operating management free to implement and manage critical recovery initiatives.