Just as individuals and families regularly run into financial problems, so can entire companies find themselves struggling to service their debts. When debt-related financial problems arise, working with a consultant who is experienced with such matters often proves to be the best solution.
Cane Bay Partners regularly helps client companies develop debt liquidation plans that maximize the value of their assets and the desirability of their situations thereafter. Thanks to the skills and experience of partners like David Johnson Cane Bay is regularly able to develop and implement solutions to even the most intractable seeming of debt-related problems.
A Strategic, Informed Take on How Best to Liquidate Debts
In most cases, creditors have priority over stockholders and other owners of equity when it comes to making claims to a company's assets. As such, dealing with debt problems as soon as they become apparent can be of critical importance to almost any business.
Fortunately, there are almost always ways to reduce the burden of even significant seeming debt issues such that a firm can continue in business. Normally, at least the following basic steps will be involved:
Identification, valuation, and prioritization. Even where the nature and full extent of all a company's debts are well understood, the picture with regard to assets will typically be less clear. It will often make sense to start the process of debt liquidation by inventorying all of a company's assets and trying to assign a relatively accurate value to each. At the same time, it will normally be productive to start thinking about how difficult each of these might be to convert into forms appropriate for paying down debts. Finally, the established market value of particular assets should be compared against their importance to the company in question itself.
Negotiation. It will rarely be wise to liquidate assets and proceed immediately to paying down debts as originally agreed upon. In just about every case, a distressed corporate debtor will have some leverage that can be used to improve upon the original terms of particular debts. Negotiating with creditors can be every bit as important as being ready and able to turn illiquid assets into cash.
Moving on Without the Burden of Excessive Debt
Being able to successfully liquidate debts in ways that do not excessively burden a firm can end up being one of the most important accomplishments of all. As a result, many companies find themselves seeking out and benefiting from the support and assistance of experts at such matters like Cane Bay.