Warning Signs
Many times, lead management teams are unaware of the magnitude of their situation until it is too late. Owning and operating a business can often be overwhelming, and this can lead to vital concerns being put aside until management is ready to confront them. The factors leading up to a company downfall are as varied as the types of companies that are out there, but they can often be attributed to the following areas– financial management, internal affairs, legal concerns, and product administration. Below are the indications of a distressed business:
FINANCIAL MANAGEMENT
This area is the foundation of any enterprise, but without the sufficient counseling, it can drive any business – large or small – directly into a downward spiral. Lack of financial control can be characterized by inadequate recordkeeping, financial deficit, lack of positive cash-flow, escalating overhead costs, or unprofessional relationships with sources.
INTERNAL AFFAIRS
This area includes anything related to personnel and internal operations. Indicators amongst the workplace include but are not limited to lack of internal communication, unethical business practices, distracted or unfocused ownership, and overstaffing, unmotivated employees, or abandonment of key employees.
LEGAL CONCERNS
Many business owners commit to certain legal obligations via contract in order to maintain legitimate operations. When these commitments are overlooked, stakeholders can initiate legal action to obtain results. There are many signs to indicate legal concerns in the business, such as mounting pressure from vendors/creditors, troublesome audits, overlooked critical information, or under-reported liabilities.
PRODUCT ADMINISTRATION
When a business’ product is at risk, the focus of operations is displaced and can quickly result in a decline in profit and ultimately a distressed company. Some factors that indicate potential risk in this area are quality issues with products, failure to provide products or services that fall under the umbrella of the established business plan, and a management team that depends on the next product line, next store, or next IT system implementation to solve its troubles.
Our Turnaround Process
When you call The Kircher Group, you'll gain access to a team of expert consultants who will know how to revamp your business to make it more profitable and much more likely to survive an economic downturn. We will start by analyzing your current operations and the competitive environment in which you operate. Additionally, we will identify all your opportunities for improvement and assist in the development of strategies to maximize the opportunities available to you.
Some of the actions The Kircher Group can take to help your company:
We will thoroughly examine all of your current contracts – with service providers, insurance companies, and building/real estate companies. Our focus is to renegotiate these contracts to provide alternative options that coincide with the financial solutions we can offer.
We will review all current accounting records and back taxes. This will assist us in determining unnecessary operations and cash drains, which can help us reduce overhead expenses and increase return on investments. We can also develop a long-term payment strategy for taxes and potentially arrange for taxes to be minimized in the future.
Lastly, we will examine the intricate operations of your business structure. This will help us determine where consolidating is necessary to reduce expenses, and redesign your workflow procedures to optimize efficiency and productivity.
Consider Selling?
The Kircher Group is currently working together with a number of investors that are interested in buying distressed companies. We are looking to add as many as ten new businesses to our portfolio. We can develop a program that is a win-win situation for the distressed business owner, as well as The Kircher Group and its investors.
