An uncertain economic environment together with lack of bank funding mean that under-performing companies without a sustainable profit trajectory are difficult to sell. If a business is marginally profitable or loss making, it may risk going into administration without any further injection of cash.
To respond to the growing list of companies who are unable to return to profitability or sell their business, we have partnered with a leading London based turn-around specialist to provide both turn-around support and funding (up to £1M per business) to stabilise and resurrect businesses.
Business owners can be helped to resolve urgent situations and drive rapid change to ensure that the business remains viable before the selling process commences. Our approach is to help provide the experience, knowledge and capabilities to drive results which can mean the difference between insolvency and a successful restructuring/sale.
Reasons to consider turn-around funding:-
- Maximises the value of the company through “new management” and injection of funding. Our turnaround partner has turned around other businesses and understands the key financial, operational and emotional challenges
- Improves access to credit with lenders and suppliers. Banks and trade creditors will positively view the additional injection of cash and turnaround management expertise.
- Ensures that the business remains solvent/viable and therefore preserves your reputation in the market and employment of staff.
- You can remain in control. In return for turnaround funding, our partner will take a minority equity stake in your business. However if the business is loss making, then you may have to lose control for an initial period until the restructuring is complete. Unlike most turnaround professionals who take a cash-based fee for their services, our partner aligns their interests with you by taking an equity stake in return for funding.
- You don’t pay anything for this service. However, we ask that once you have returned to profitability and are ready to sell a healthy business, you agree to consider Stirling to market your business for sale.
Here is how the process typically works:
- Contact us for a free, confidential discussion so that we can understand whether it is better to sell your business today or if you need to turnaround your business to maximise the sale value of the business.
- If appropriate, we will introduce you to our turn-around partner for a more in-depth discussion about your business. This is also a free, confidential discussion.
- At the end of the discussion on the same day, our turn-around partner will tell you whether they there is potential for turn-around funding and indicative terms.
- If you are happy with the indicative terms, a rapid 5 day due diligence will be conducted. If the due diligence goes well and you agree with the terms, you will receive the funds within another week.
Please note that you are not obligated to engage our turn-around partner until you have received the funding. Also, there are no fees or costs to you for any initial advice you may get from our turn-around partner. However, we ask that you don’t waste their time if you are not serious about bringing external turnaround support or funding – otherwise, it is not the most productive use of everyone’s time.
We have seen many struggling companies perish without the right management support/funding and it is worth giving your business a fighting chance to succeed and sell at a much higher valuation in the future.