In the same way, the restructuring path follows two time horizons:
- In the short term, stabilising the business by assessing the current liquidity position and the runway necessary to complete the restructuring
- In the long-term, recapitalizing the company and improving its performance.
During early turnaround situations (e.g., first covenant breach or missed payment), firms typically don’t have the internal resources or expertise necessary to develop and execute a restructuring plan with the quick turnaround that is typically required.
Hiring dedicated restructuring professionals gives management the opportunity to focus on the daily operations and successfully execute the business plan, while also providing other stakeholders (e.g., shareholders, board, lenders) the additional reassurance that the process is managed by a trusted, independent party with previous experience in these extraordinary circumstances.
Sapling works with mid-market firms and turnaround consultants in restructuring situations to offer best-in-class financial modelling and data analytics, thus enabling management and CROs to spend more time on higher level items, such as decision-making, negotiations with lenders, changing management, and improving performance. We have the expertise to offer these services with quick turnaround times to support successful turnarounds and provide solutions during times of insolvency. We are also able to support turnaround consultants during times of limited capacity by offering our services as a third-party to increase their bandwidth while still providing Partner oversight to maintain quality control.
