As the ailing economy continues to limp along, many business operators and investors find it challenging to remain competitive. Many company leaders and entrepreneurs find themselves unable to meet their debt service payments and operating expense obligations, and need guidance on how to proceed. Covendium, the nations largest debtor-side commercial debt restructuring and advisory firm, is introducing a new evaluation tool to help struggling investors and business operators consider their options. The process allows these investors and business operators to benefit from a brief but fairly comprehensive and intensive review of their current financial and operational position. The seasoned Covendium leadership team then delivers a Shark Tank roundtable dialogue where the client will hear candid observations about the estimated current value of their assets or operations, the range of viable resolution or recapitalization options that may be available under current market conditions and the next steps required to pursue a chosen plan of action. Any fees paid towards the evaluation are applied as a full credit towards a Covendium engagement.
If financial distress could be compared to cancer, we operate like a financial oncologist. The evaluation process is an intensive virtual financial physical for a client who is suffering from symptoms of financial distress, or is concerned that their investment or operating business is not strong enough to survive under current market conditions, explains John Douglas, COO and Managing Director of Covendium. The evaluation isnt meant to be the cure, in itself but we can assess their stage of financial distress and discuss the different strategies that would be recommended to put the client on the road to recovery.
During the evaluation process, Covendium will look at the clients lenders, perform summary financial analysis and have a detailed conversation between the client and its Executive Team to determine what the investor, operator or entrepreneur is most concerned about. Covendiums evaluation process can shed light on the practical reality of helping a distressed client pursue its restructuring goals. Before a client goes through Covendiums evaluation process, they may be making critical decisions without the full knowledge of their situation, without knowing about all of the tools available to restructure their ailing capital structure and without having the experience of how to pursue their objectives, continues Douglas. After going through the evaluation process, a client may not like what they hear about the reality of their situation, but they will be receiving impartial advice from a seasoned group of business professionals who spend most waking hours doing capital restructuring work, says Douglas.
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