You started down a path you thought was a direct route. Then, you were blindsided by something that no one could have predicted and your business has a setback. It happens to everyone. If you are funding this yourself, you would make the adjustments and move on to success, but you have unfortunately brought on financial partners (such as bankers and shareholders) that have expectations that you have just broken. When faced with this unfortunate situation, it is critical to communicate with your financial partner regularly to help assure them you have it under control.
No one likes to go back on their word, even when it is not their fault. Unfortunately, life happens and you are in default of debt covenants or representations and you have warranties on the equity. Such default will understandably keep you up at night.
The more you look for solutions, the harder they are to find. Banks will not refinance a distressed debt and it can be difficult to buy out a shareholder who has dreams of doubling his investment.
When you are faced with a situation like this, our team at Renascent Business Solutions can help in multiple ways. We specialize in charting paths through narrow cash flow waters to return your business to profitability. If salvaging the stakeholder relationships are not an option, your best option is to find a partner that is willing to buy the distressed position and work with you to turn your company around.
Other people are unaware of their situation and unsure of the expectations their shareholders have placed on them. This can be one of the most difficult situations for your firm as it can create unreasonable stakeholders that will force your hand.
Are you having problems keeping your shareholders and lenders on the ship and paddling in the same direction as you? If things have gone sideways for you, and you need help getting rid of unreasonable stakeholders, our team of specialists can not only build the models to restructure your capital, but also put you in touch with the right stakeholders that will see your vision.