Business Improvement Group

Services > Work Out Services

Distressed companies are running out of time. BIG thoroughly and, most importantly, quickly analyzes the situation and assists to implement the changes necessary to improve your bottom line. We are experts in generating cash flow by squeezing cash out of inventory, accounts receivable and accounts payable.

The new business model we develop allows us to sell off assets, divest and retrench from non-core assets and segments, and bridge the time required to determine the long-term viability of the company.

We perform an independent Financial Analysis to determine root cause and level of distress. Using a three phase process we work with businesses to help them determine the next steps.

PHASE 1: Short Term Tactical Analysis

• Analyze recent financial and operational performance;
• Analyze capitalization to determine if company is insolvent, the legitimacy of collateral and cash disbursements, and identify operational issues negatively impacting cash flow and collateral;
• Develop a short term tactical business plan focused on aggressive management of A/R, inventory, A/P, and non-core assets;
• Develop a 13 week cash projection;
• Negotiate and communicate with creditors and vendors through a priority ranking system;
• Negotiate payment terms and favorable pricing with customers; Conduct customer revenue and profitability analysis;
• Identify operational inefficiencies and hidden resources and make recommendations regarding:
  • Effective resource utilization - people, money, assets, equipment, facilities;
  • Elimination and redeployment of non-value added resources;
  • Retrenchment to eliminate non-value added transactions throughout organization;
  • Vendor/ product line/warehouse/manufacturing plant rationalization.

PHASE 2: Mid Term Tactical and Strategic Analysis & Implementation

• If Entity is determined to not be viable, assist with one of the following:
  • Sale , partial divestiture, out of court liquidation, receivership, bankruptcy proceedings.

PHASE 3: Long Term Strategic Analysis & Implementation

• If Entity is determined to be viable:
  • Develop strategic plan and implement re-engineered, redefined leaner business model focused on profitable and sustainable growth;
  • Explore bank options – sale, equity infusion, re-financing, return as non-criticized credit.