Any strategy for financing a business today is fraught with risk. Smart managers understand that a contingency plan is absolutely necessary.
Our process for building a robust business model not only provides that option, it serves as a strong negotiating tool for achieving the financing strategy. Fully vetted, granular and with the robustness to model a range of assumptions and sensitivities, clients can present a compelling business case to their lenders and other key constituents.
Crafted with the lenders’ needs and motivations in mind, as well as those of their constituents, management demonstrates a deep and sophisticated understanding of the key business levers available to them and helps them keep control of the process.
Debt holders expect that management will fully consider all potential outcomes. By credibly comparing the recoveries from management’s proposed restructuring to other outcomes, typically including Chapter 11 restructuring and liquidation, management increases the probability of achieving their proposed solution. In the event of the need to undertake a Chapter 11 filing, the contingency plan then serves as a foundation for a faster and more efficient and successful reorganization process.