In the first of a two part podcast series, GSG’s Chuck Faunce, Director of Business Valuation & Litigation Support speaks with Jeff Sands, the Managing Principal of Dorset Partners, LLC to discuss how a turnaround specialist makes distressed businesses valuable.
The podcast highlights the causes of business distress, signs that indicate it might be time to call for help, typical turnaround strategies and suggestions for how businesses can build on the changes made by the turnaround specialist after the specialist is gone.
Distress tends to result from problems with management or challenging circumstances that overwhelm management. Either way, a strong sign that a business is distressed is when its lenders insert themselves into operational decisions.
This is an indication that current management has lost credibility and that new management is required to keep the lenders from forcing the business to liquidate.
The sooner current management recognizes this or other signs and calls for help, the better the chances of a successful recovery.
Jeff and Chuck also discuss how baby boomer entrepreneurs looking to exit their successful businesses can find themselves forced into what amounts to a distressed sale by failing to develop an exit plan or by failing to allow sufficient time to execute the plan.
In part two of the podcast series, Jeff and Chuck discuss multiple turnaround scenarios, the distressed exit “salvation” process, friendly foreclosures and much more!Categories: Valuation