Banks and investors can benefit from an objective opinion an outsider’s perspective lends to the evaluation of a company’s operations and its management. Utilizing consultants experienced at the executive management level brings an outsiders perspective to investors, bankers, and management to better understand the current environment and build a bridge for understanding and problem solving.
BUSINESS DECLINE AND CORPORATE RENEWAL
Businesses experience decline due to both external and internal forces. External causes of decline include economic changes, competitive or industry changes, labor changes, and governmental regulation. Internal causes of decline include management related issues, such as lack of management depth, unbalanced top management and dishonesty or fraud. Another internal cause of decline is a weak finance function, which manifests itself in under capitalization and excessive leverage, over-extension of credit, excessive inventories, excessive fixed assets, poor information for management and lack of adequate controls. The first step in solving any problem is clear and concise recognition of the problem. An objective point of view by someone with good investigative skills and broad business understanding can do this quickly and efficiently. Designing the plans for renewal quickly follows identification of the problem.