Turnaround Finance Canada: Dont Just Imagine Company Restructuring

Financing

Ch Ch - Changes Turnaround & Restructuring Financing In Canada

OVERVIEW Information on turnaround finance solutions in Canada .

Investigating key aspects and elements of successful company restructuring
financing needs

Turnaround finance solutions in Canada will almost always mandate ' ch ch changes '

in how a business is and will be financed. While David Bowie probably wasn't thinking
company restructuring financing when he wrote his iconic song it's safe to say that '
change ' is something business owners in challenging situations must address. Let's dig
in.
Financing solutions for ' turnarounds ' have the ability to be both complex and simple,
requiring knowledge, experience and the ability to access financial resources that
augment the turnaround. The goal is almost always the same - avoid bankruptcy,
maximize the value of the assets of the business, and in some manner ensuring the long
term viability of your company. Bottom line, its all about addressing the various
constituents - owners, creditors, suppliers, employees.
While we're focusing here on financing issues other items need to be addressed- i.e. sales
growth, employee issues, cost reduction, etc. All of those, and others, necessitate ' ch ch
changes'! In many cases the type of industry you are in will often necessitate the type of
change required.
Assets and collateral are often at the heart of any turnaround finance. If not addressed
with the right financing solutions the perception or reality is that assets have the potential
to lose their value in challenging times. The ability to leverage those into a proper finance
solution is key. Unfortunately items such as ' goodwill ' and R&D' dont play well into
current and immediate fix requirements. In some cases they might need to be written
down or curtailed respectively.
One of the best solutions that is somewhat all inclusive and a one stop fix is the ' ABL ' the Asset Based Loan. Whether term or operating in nature it rounds up receivables and
inventory (operating) and equipment and real estate (term) assets and monetizes them
into one facility. Almost always it takes our current secured creditors and banks - while

often injecting more capital into the business immediately. It allows owners and financial
managers to address what the pros call the ' capital structure ' of your business in a
temporary fix manner.
While fewer ' traditional ' finance options exist in turnarounds those that do can address
your creditor issues.
Other company restructuring solutions include:
Bridge loans
Sale Leasebacks
Mezzanine / Cash Flow financing
Any one of the solutions we have mentioned allow the business to self correct some of
those key issues around financial ratios, covenants, owners guarantee liability, etc.
What is the focus of a financial turnaround? Key requirements include:
- A strong and realistic cash flow forecast - (strong A/R and a/p analysis)
- understanding current liquidity
- balance sheet /working capital ratio analysis
- profit /margin analysis
The best situations in turnaround often show that the company itself has a lot of long term
potential, its just all about correcting the present balance sheet - in effect a ' makeover' is
required!
Timing is everything in refinancing under restructuring - it's all about stopping the
negative cascade of events and perceptions. One top expert referred to his as halting the '
melting ice cube '!
Accessing turnaround finance requires credibility and expertise. Seek out and speak to a
trusted, credible and experienced Canadian business Financing Advisor with a track
record of success who can assist you in restructuring financing that helps ensure the fix.

Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset
based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance .
Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian
corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN TURNAROUND FINANCING
EXPERTISE

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CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop