How we administer the turnaround.

Most of our management turnarounds are administered by our company partners. They are a high-energy team, with numerous years of business experience. They have a proven record of turnaround success. Both S. Fox & H. Baker has owned and worked businesses in the wholesale distribution, retail, hospitality, marketing and direct sales business in addition to the Internet Retail and Wholesale business and utility construction business just to name a few. In fact they came in as the turnaround team of the world famous Hair Club for Men and secured the companies legacy by selling the company for it’s founder. Through Avistar Business Advisors, we are offering hands-on turnaround and restructuring services to companies that are declining or in serious trouble, with a vision to make them viable on a sustained basis.

Moreover some management turnarounds and restructuring require a rapid injection of cash by outside parties, and the rules that guide obtaining debt and equity are different for healthy and for distressed businesses. In fact, the sources of their funding are often quite different. Today in the US, there is a whole industry segment dedicated to financing distressed and under-performing businesses. In recent years more money in this industry has been available than there are eligible debtors asking for funds. At the same time, most companies that are in trouble, that require funding, fail to obtain it. This problem is explained by the fact that for the most part, distressed companies don’t know where to seek funds, investor firms don’t know where to find the smaller distressed companies, and most of the distressed companies fail to make the preparations that are required to make them attractive to investors. Notably, the work involved in making a distressed company attractive to prospective investors, in most cases, requires both restructuring and management turnaround expertise, including specialized research, planning and negotiation skills.

It is not surprising that most companies who get into trouble and need a management turnaround know very little about the nature of turnarounds in general. The problem is compounded by the egos and pride of formerly successful business operators that further prevent them from taking the necessary action such as hiring a corporate turnaround consultant. They do not realize how amenable the business world can be towards a business owner, whose distressed company retains enterprise value despite its bad financial statements. The condition for obtaining such a second chance is the restoration of credibility.

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