Finley, Colmer and Company provides objective financial advisory services designed to proactively assist companies operating under various levels of duress. By quickly understanding key issues, we work with owners and senior management to handle any immediate liquidity constraints and begin the complex task of debt restructuring. Finley, Colmer also advises companies considering, or engaged in, a bankruptcy filing. Our experience indicates that delay on the front end typically leads to fewer options available with less time and capital available to pursue them.
Cash Flow Management
The first priority of almost all restructuring efforts is to understand the cash flows of the business. What are the company's primary sources and uses of cash? How does the flow of cash into and out of the business affect working capital and other covenants used by lenders to monitor the business? How can the business show a positive net income and simultaneously risk not having the cash or the availability necessary to finance ongoing working capital requirements?
No matter what the industry, a detailed understanding of and ability to manage cash is critical to executing a successful turnaround. Finley, Colmer advises financial and operational management on how to more accurately project and better understand the true cash flow-generating capacity of their business. This analysis is critical in persuading creditors to provide the additional time typically required to explore more permanent strategies and solutions.
Interim Management
Both Peter Colmer and Mark Smith have taken senior level positions including CRO, CEO and CFO assignments with complete control over a company's finances. At other times, Finley, Colmer may simply be called on to serve as an extension of the existing management team. In any situation, our firm has the expertise to help companies objectively evaluate their options and manage the design and implementation of any turnaround plan.
Crisis Management
Finley, Colmer advises middle-market companies operating in a crisis situation. For example, we assisted a company that had one of its larger customers file for bankruptcy. This filing caused the company's secured lender to define any receivable due from the now defunct entity as "ineligible." That company, previously in full compliance under its loan agreement, was now "over-advanced" and at risk of not having access to the working capital needed to fund key operating expenses of the business, including payroll.
Finley, Colmer advisers are skilled at quickly understanding the key aspects of these types of situations so that we can move quickly to stabilize the situation and help ensure that key relationships remain intact. Consistent communication with key creditors, customers, and other stakeholders is critical.
Contingency Planning
We strongly encourage our clients to produce contingency plans. The first reason is that lenders typically will expect management to have considered all potential outcomes, including liquidation. The second reason is that even the most well-designed and thought-out plan will most likely experience some challenges along the way. Events happen quickly, and advance planning is critical to responding appropriately.
Finley, Colmer produces dynamic projections that allow for the modeling of a wide variety of key assumptions. We adjust our thinking as events unfold in real time. In addition to providing management with a key operating tool, the process of objectively evaluating options shows creditors that management is in charge of the situation and proactively thinking through all available potential courses of action.
Creditor Communications and Negotiations
Effectively communicating with key creditors is a critical aspect of the successful implementation of any restructuring plan. Lenders need to fully understand and "buy-in" to the plan before they will agree to finance its execution. Aside from other sources of capital, your lender typically plays a critical role in the process.
Finley, Colmer has extensive experience communicating and negotiating with various creditor constituencies. Both secured and unsecured creditors play a role. It is generally in managements' best interest to educate the key entities as to why their support of a proposed recovery plan is ultimately in their best interest.
Fixed Asset Review
A full review and understanding of a company's fixed assets is a critical component of any well-designed restructuring plan. Working closely with management, our experienced advisers help to quickly identify and liquidate non-core assets whose disposal may generate the cash necessary to fund other more pressing needs.
Post Restructuring / Longer Term Strategy
Management teams often require assistance to maximize the probability that a previous crisis will not be repeated. Longer term projections are designed to help you better understand and develop the necessary strategies to help ensure that your company's capital structure is appropriate for your long-term business objectives.
Similar to our experience with short-term cash flow forecasts, our advisers are also highly experienced in the generation of long-term plans that dynamically allow for changes in the key assumptions involved so that their predictive quality and accuracy is enhanced.
