services for distressed companies
Financial crises require an immediate and focused response. Delay in taking appropriate remedial action can severely exacerbate the situation. Loss of credibility and trust with lenders and suppliers can preclude a business from obtaining goods and services critical to customer order fulfillment and operations. Eventually, customer relations are affected, resulting in a decline in revenues. In addition, employee frustration and uncertainty can lead to the loss of essential skill sets and experience within the organization.
Pivotal Strategies has extensive experience in diffusing crisis situations and can have an experienced crisis manager on site within hours to begin the stabilization process. We assist our clients in taking immediate control of short term cash resources and requirements and establish a crisis oriented cash management process. We communicate directly with trade creditors and lenders in order to formulate viable interim working relationships that ensure continued flow of critical goods and services. We leverage our experience and credibility in obtaining financial flexibility and additional planning time from all relevant constituents. We also work with our clients to incorporate short term cash flow forecasting into the cash management process. This enables identification of critical windows and provides the basis for ongoing, meaningful communications with all relevant parties.
With a degree of order and control restored, we work quickly with client management to assess underlying operational, strategic and financial issues and formulate a comprehensive plan of initiatives for recovery.
Crisis management is not an end in itself. However, when executed quickly and professionally, it sets a tone and provides the flexibility for planning and executing turnaround initiatives for the ultimate recovery of corporate value.