Restructuring and Turnaround

What Does an Independent Professional See that You Don't?

Problems don't appear overnight nor do they disappear unattended. Moreover, situations tend to deteriorate at an accelerating rate. Swift, decisive and proactive steps are required to halt the downward spiral. This is what "crisis management" is all about.

Sherwood has over 15 years of guiding companies back to financial and operational stability. We focus on a rapid and correct diagnosis followed by immediate triage. Immediately after the diagnosis, the company can be repositioned and set on a new and grounded course. We then work with management and implement the new plan with precision and assurance.

We enjoy an excellent reputation in the legal and financial communities. These relationships enable our clients to have enough time to restructure and turnaround their eroding situation.

Call us and discuss how Sherwood can help your company in times of crisis.

What Warnings Signs Did You Miss?

Corporate crises usually have a common thread. Management is often too close to the situation to see "the big picture" as it begins to unfold. The management team isn't expected to have turnaround experience, yet that is the situation in which they find themselves. They need a support system and they need it fast. A crisis or turnaround is not the time to learn on the job.

Time cannot be wasted through guessing and trial and error. Options quickly narrow down to one or two unpleasant scenarios. By using Sherwood when time is still on your side, the chances for a positive outcome are greatly enhanced. It requires confidence that comes from years of experience and a strong professional reputation.

Our proven track record and proactive model assists balance and growth for our clients. So often management states, “we should have considered the Sherwood option six months to a year ago”.

A successful restructuring has four elements:

• defining the financial goals
• creating the operating plan
• verifying the plan and direction
• executing the plan

However, the first element alone can be quite difficult. In seeking appropriate and realistic financial and operational objectives, conflicting issues arise. One set of actions may have an undesirable set of reactions. For example, the objective of reducing cash burn often means decreasing personnel. But that decision can result in lower sales and slower product development. Conversely, a turnaround plan usually calls for sales growth. So conflicting action steps need to be reconciled and coordinated to achieve the desired results. Additionally, in the midst of crisis the company must somehow find the time to create a plan and implement it. By relying on Sherwood to develop the plan and guide its execution, the corporate management team is able to leverage its time and focus on daily operations.

We provide companies with the advice and services to allow the following to occur:

• Reach forbearance agreements with fundamental suppliers and capital providers;
• Reduce debt and/or debt service to realistic levels;
• Restructure other liabilities to meet newly defined cash flow goals;
• Incorporate ultimate corporate objectives into operating plan;
• Assist owners and management with pursuit of desired objectives including the repositioning or refocusing of business, formation of new alliances and introduction to potential partners.

Credibility is one of the most critical components to successfully stabilizing and turning around a business. Creditors must be informed in a timely and factual manner. Relationships with key suppliers must be righted and set on solid footing for the future. Debtors and investors must have a plan and projections that are viable and acceptable to them. Although reality may be harsh to these various "corporate partners", credibility can be achieved through Sherwood's active participation and hands-on experience with these scenarios.

Our record of success gives your company "instant credibility". This translates into time for you and a fresh start for the company.

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