Companies that have been around for a number of years sometimes let things slip. The sales staff may no longer make a 100% effort (“We’ve always had enough customers, haven’t we?”), the Accounts department may no longer bother chasing up late payers (“They always pay in the end”), and no one knows the company’s precise borrowing position (“Why should we? There’s never been a problem, has there?”). In the end, you’ll have five people performing four jobs and no one to notice that a team of four could easily handle the workload.
Organisational problems often tend to surface in a recession. Swift, effective action is called for, even though the consequences may be painful. Desperate diseases need desperate remedies, and an infected wound may result in the patient’s death.
Corporate restructuring is a custom-made process that requires expertise and experience. In most situations, it is absolutely vital that your lender should be prepared to back the process – or else that you find yourself a new one. We can help you persuade your lender to retain or regain its confidence in your business.
Provided the operation is performed properly and quickly, it’s often possible to clear out all the dead wood in one go, so that the company can start again with a clean slate.