services for distressed companies
Pivotal Strategies’ professionals have substantial experience in dealing with the challenges and issues faced by distressed or troubled companies. We have assisted companies that are underperforming and marginally impaired due to poor or erratic cash flow. We have also supported businesses in severe operational and financial distress, spiraling toward bankruptcy or liquidation.
We have guided companies through periods of enormous challenge. These have included operational and financial crises, turnarounds, lender workouts, debt restructuring or refinancing, bankruptcies, distressed business sales and liquidations. We know, first hand, the issues facing our clients and have proven track records in confronting and overcoming them. In addition to our technical skill sets and broad experience, we are highly sensitized to the needs and concerns of all stakeholders and the inherent emotional impact on business owners, management teams and employees.
In severely distressed situations, we initially work to restore stability and order to provide the time and flexibility to formulate alternative courses of remedial action. At the same time, we work with management in understanding external and internal business drivers, assess the viability of the business and develop strategies and initiatives to restore operations to profitability and positive cash flow. Alternatively, sale of all, or a portion, of a client’s business may be the optimal course for recovery of value. While we lean heavily toward out-of-court management of the process, in certain cases there may be compelling reasons to seek protection under Chapter 11 of the United States Bankruptcy Code. In these instances, we work with our clients to guide them through the applicable bankruptcy processes. We test the feasibility of all available options and provide objective, pragmatic analyses to assist our clients through the difficult decisions they may face. Whatever courses of action are decided and acted upon, we assist our clients in managing through their implementation, either in an advisory or interim management capacity.
Throughout our engagements, we assist our clients in communicating and managing relationships with lenders, suppliers, customers, employees and other critical constituents. We work to establish an environment of trust and cooperation and we help rebuild relationships that will benefit our clients’ businesses long after the crisis has subsided.