The process of restructuring a company is complex. While a number of issues are common, no two situations are ever the same. There is however a common sequence of events which are typically undertaken to begin the process.

The best time to do a financial restructuring on a company?

During the good times, when it is earning the most and profitable. That is when the most waste occurs, yet appears inconsequental and is easily afforded, and ignored – causing potential future issues and making problems larger.

When are the majority of them requested?

During financial downturns, either in the economy or due to issues at the company itself. Then the issues have caused their damage and are more difficult to change.

What was the earliest one was requested?

We were brought in to carry out a restructure on a business still in the planning stages, by the investors themselves. Our work created a new plan for the company, optimizing its activities, and reduced the investment needed by 89%.

As strange as it may seem, one of our first areas of focus once restructuring work starts is in its growth. If operations are profitable, we immediately set out to increase the volume of sales to utilize the company's capacity.

In doing so we bolster the company and its ability to continue operations with a view to rebuilding financial reserves.

This is often a factor that is overlooked by others, and we have frequently been called in after a restructure attempt was carried out without this normal business procedure being taken into account or actioned.

Manufacturing companies are often the most complex to rescue, with the majority of debt typically being to much needed raw materials suppliers. Coordination and realistic negotiations are often key to solving the problems.

A large machine shop based in the midwest ran into financial troubles - behind on supplier invoices, payroll taxes, and various other liabilities. Our first meeting with the two partners went well, we were retained to work on the company.

An initial snapshot of the company proved financial viability with the ability to create profit. A rapidly pieced together financial plan for the company was enacted, several changes made, and work was started on restoring the company to health.

Work covered everything from initial financial planning, creditor negotiations, and re-growing sales. Work then continued for several months as a partner group was sourced that brought investment and new product lines to the company.

Sometimes solutions are relatively simple to a viewer with a fresh look at a problem, but to those inside the company the view is a lot different and typically nowhere near optimistic or even hopeful.

Family businesses often present whole other layers of problems where personal pressures add to the business structure and operating issues. Sometimes they don't work as smoothly as planned or hoped.

We were asked to meet with one company, and its board, by the consultant already hired by the owner. The two had known each other for many years, and the consultant discreetly relayed that he didn't believe he was being given all information and it was possibly a matter of pride.

After a tense first meeting the consultant convinced the board to retain us for an initial 90 day period, and work began immediately to create an initial picture of what we were dealing with. Within the first three days we discovered over $1.5m in past due debts owed to a total of 57 main creditors. We also unearthed that two of the high salary staff were being kept on payroll due to their being part of a lawsuit, and basically had no function within the company. In plain business reporting the picture was presented to the board with a preliminary plan to sort the issues.

The plan was begrudgingly approved, debts were brought in line with cashflow into the company and operations were restored to a normal level. However, all recommendations were discarded out of hand by the owner and after a 90 day period at a meeting of the board it was proclaimed by him that everything was fine again and our services were no longer needed.

This is an important extension of this project, as it displays well the need to set business aside from personal.

Upon our leaving the company, literally walking out of the door, we were approached by the owner's son with a request to meet within an hour. At the meeting he made it clear he had left the company and wished to retain us to start and assist in the running of a company similar to the fathers. After a day of contemplation no conflicts could be found, there was no proprietary information we posessed, so the agreement was set. The company was started and grew rapidly throughout our involvement with it over a seven year period.

The industry involved was the tech industry and this took place during the dot.com boom, as it later became known. After the bust happened to the industry, we remained working with the company and revamped it to serve a different market.

The fathers company had closed its doors less than seven months after the son leaving.

With personal feelings set aside, a different scenario played out in another family based business that worked out well for all involved and likely further bolstered what was already a great familial and business relationship.