Companies rarely underperform for just one reason. Most often, it is a combination of two or three of the following:
- Sudden Economic Disruption
- Mismanagement
- Misfortune
- Fraud
When this happens, companies that need to change their fortunes will benefit from the expertise and tenacity that MidMarket Management Group brings to the decision-making and planning process. These distressed companies cannot expect the management group that got them in this situation, to lead them out of trouble too. MMMG personnel have spent decades working with underperforming and troubled businesses and their owner/managers to create tangible change in the financial fortunes of our clients.
Most general managers only have real financial/operational troubles one or two times in their careers. Management of a company in distress requires unique skills and perspective not found in most companies, or taught in most business schools. Managers understand it fundamentally, but the implementation and oversight are foreign and uncomfortable. MMMG personnel live, and have lived, in this environment on a daily basis; we will advise, guide and be a sounding board for an owner/manager as we help them restore the fortunes of their business.
We act as catalysts for owner/managers to create improved financial performance through enhanced operational and financial management disciplines. When we complete an assignment, not only are our clients viable, but management has likely re-established its credibility both internally (employees, and other stakeholders) and externally (customers, vendors, and lenders).
MidMarket Management Group provides comprehensive services for companies experiencing financial distress.
Emergency Intervention – Avoid Immenant Threats to Business
- Immediate cash planning and control
- Rapid operational performance improvement and decisive action to size the business to cash flow positive within the time frame allowed by the cash plan. A complete financial plan is developed as a go- forward milepost for performance.
- Clear and definitive communication with key stakeholders
- Customers and landlords
- Secured and unsecured creditors
- Shareholders, management, and key employees
- Ongoing monthly follow-up with management team
Operational Plan and On-Site Implementation
Top to bottom review of management, pricing & product cost, and staffing.
Balance Sheet Restructuring
- Identification of incremental financing or investment (can include refinancing)
- Settlement with creditors
- Potential divestiture of assets (division, product lines, physical locations)
Legal Alternative Evaluation
Interim-Management