Company Rescue through Turnaround Finance
Though the last decade has shown some improvement - rather than refer clients to a company rescue broker, bank managers prefer to go towards a liquidation route when companies start to struggle through cash flow issues, economy downturns, poor management or other problems. They prefer this because it gets them what they most want in the quickest way - their loan money back.
Through the media’s publicity in forms such as the program Dragon’s Den, the ‘Company Rescue’ sub-industry has had a little more limelite. In this program a panel of wealthy entrepreneurs has the opportunity to assist a company that needs funds to take their enterprise to the next level. If successful, they get the funds required in return for a proportion of the company and a seat on the board. Companies in the ‘Turnaround Finance’ space go through a similar procedure - no cameras of course, and no panel of experts in one go. The turnaround finance company are the experts who will see the best match among their panel and match the two together. Matches have a high success rate and companies return to a state of profitability and have the added benefit of the investor on board for the foreseable future.