Turnaround
You don’t need us to tell you how turbulent the commercial and financial waters have become over the past few years. Change is inevitable. Survival isn’t. There are times in the life of every enterprise that stymie the best of managers. Sagebrook has the expertise and extended industry resources to work with you through those difficult stages.
In today’s “new economy”, it is more and more common to experience critical internal and external challenges that test a company’s very existence. Many excellent companies haven’t survived, and others question their ability to navigate the change they’re experiencing. We would like to show you exactly how we can help.
Financial, Market & Operations Analysis
Stabilization, Restructuring, Implementation
Interim Management
Whether your company has had difficulty getting to steady growth or has been flourishing up till now, if you are concerned about the path ahead, Sagebrook Partners can provide valuable guidance and hands-on implementation to help deal with what’s coming.
Financial, Market & Operations Analysis
The turnaround process begins with a situation analysis, and we use a process-driven approach to assess the areas of distress. As much as possible in these situations, management needs to focus on keeping the ship moving ahead.
Sagebrook puts together inputs from finance, operations, creditors and equity holders to determine key indicators for the business and establish methods to monitor performance and effect rapid change.
We evaluate cash flow, debt service capacity, capital structure, reporting systems, controls and management team capabilities, and we work with you to determine immediate needs.
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Stabilization, Restructuring, Implementation
The next step is stabilization. We work with senior management to implement operating changes, recapitalization or restructuring of debt or equity, depending on the company’s specific situation. We then work with you to develop an action plan and move into the implementation phase.
Multiple stakeholders often layer competing demands on top of your core operating objectives. Capital availability is frequently under intense pressure in turnaround situations, and rising debt & limitations in lines of credit can combine with declining net worth to place intense pressure on the ability to maintain smooth operations, production and delivery. We have considerable experience negotiating with client’s lenders to reduce or renegotiate debt through restructuring or refinancing loans and payment terms. Maintaining ample cash flow is key, and this can also mean working with creditors and shareholders to help solve immediate liquidity problems.
Stabilization actions rapidly transition to design and implementation of the turnaround plan through a series of prioritized interventions that impact many functions of the organization. A business restructuring plan often involves a re-engineering of the company’s processes and implementing cost-reduction procedures in operations. Sagebrook is experienced in helping to develop the new business plan and put these often difficult changes in place.
Finally, existing strategic relationships are often under pressure require attention and restructuring themselves. We also often explore new partnerships around supply or distribution that can prove extremely timely during these periods.
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Interim Management
In times of transition or with the departure of a key executive during crisis, having access to experienced interim management can make all of the difference. Sagebrook team members have held a range of C-level roles in multiple industries; a resource that may be of value to your company.
We can attend to vital aspects of the operation, including cash flow management, bank, creditor and shareholder relationships, as well as employee and vendor relationships.
Once the company moved into recovery, we help recruit, select, hire, and train replacement managers to help ensure the recovery is maintained.
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Consider Sagebrook
Each client engagement is unique, but Sagebrook is able to bring a range of resources and strategies to our clients for consideration.
Examples of the types of client concern that lead to turnaround engagements:
- Need to engage short-term crisis management
- Sudden pressure to identify new avenues of financing or recapitalization
- A historically reliable source of financing is either not renewed or is offered on new, less favorable terms
- A need to renegotiate critical supplier or distributor agreements
- The company is nearing default on one or more covenants in a critical financing agreement
- One or more key customers, suffering in a weak economy, suddenly reduces their orders
- Raw material costs spike or – when an important vendor fails – the company finds itself dealing with a fire drill around sole supplier risk
- Prices for a company’s key products or services suffer extreme and sudden downward pressure
- A sizeable stakeholder in the company wishes to exit the business and monetize his or her investment
- A major, unexpected adverse event, such as significant litigation, government investigation, or failure of a key customer threatens to distract management from its core operational responsibilities
- A need to seek protection under the federal bankruptcy code