There
are two fundamental ways in which we help companies experiencing difficulties:
1) Where appropriate by turning around the business, back to profitability,
and with the financial resources it needs for the future. This is always
the first possibility we look at. It will usually involve negotiating with
creditors and banks, and if appropriate introducing investors willing to
input the extra capital that's needed, and also looking at how to make the
business more profitable in the future.
2) If because of the difficulties faced, it looks unlikely that the company
can be turned around as it is, then the way forward will be to restructure
the business into a larger entity - either by merging into a bigger company,
or merging into a company of a similar size where both can achieve the critical
mass and profitability that's needed for long-term growth. In reality, this
is often the best option for the owners anyway, because it can transform
the business into a highly profitable organisation. This is achieved by
linking the business, and effectively transferring the gross profit base
into another suitable company on strictly confidential grounds, having negotiated
the share ownership and directorships as appropriate for the owners. CMR
working with the owners, and a reputable firm of insolvency practitioners,
will effectively manage the transfer of the sales and gross profit across
to the new business, in a way that results in much of the gross profit now
dropping through to the bottom line as net profit, rather than being absorbed
by fixed costs as before. A similar effect is achieved for the other company,
as it will now have a much larger sales turnover base from which to recover
its costs. Because of that, CMR will be able to negotiate favourable terms
for the company. The owners will effectively be moving from having 100%
of a troubled company, to a lesser percentage of a new group business that
will be highly profitable.
The first step to take is to contact CMR as soon as possible - the longer
the time we have, the more certain a favourable outcome can be achieved.
We will look at all aspects with you, including how best to protect your
personal interests, guarantees given, etc.
Ask a CMR Executive to contact me
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David Ashcroft
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