Business Bankrupcy Is Not The Best Option
When a firm files business bankrupcy, it has almost zero chance to survive. In our turnaround consulting practice, leaders of troubled firms often ask us to help them after they are in Chapter 11.
But we cannot help them because they are out of cash, and they must first pay the court costs and the lawyers. The judge usually must liquidate these firms because they do not have enough cash or assets to pay the attorney fees.
That is why we want to discourage you from taking business bankrupcy. Your best course of action is to hire a turnaround consultant before talking to your lawyer. We will be able to give you an honest assessment of your circumstances and give you several alternatives to a business bankrupcy filing.
Many times, we can save the firm by just dealing direct with the creditors and the bank. Other times, we can factor receivables and get enough cash to fix your business model. By whatever method, we can normally save your company.
Before we go further, you should know that our fees can be expensive for many smaller and midsize firms. Typically, engaging us does not make sense unless you are at least $150 million in sales.
As an example, it can cost $600,000 a year to manage a company through its financial distress. While this sounds high, remember that we are able to save a firm from certain liquidation and millions of dollars in investor money.
We know that most visitors to this website will not be able to afford our services. In that case, you still have choices. In particular, we recommend that you turnaround your troubled company yourself. While you may make some mistakes, it is still better than filing business bankrupcy and losing everything.
To learn how to turnaround your firm, we recommend, The Insider Secrets to Saving Your Business: The Step-by-Step Turnaround Guide. This is the business bankrupcy avoidance manual We recommend it to all of our clients and prospects.
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