Successful Business Rescues Require Brave and Astute Boards of Directors - Colin Strime

If I look back at the successful business rescues I've been involved in, the following appears to be the common denominators:

1. a financial director who is not in denial, feels and foresees the financial distress, admits it and deals with it;
2. early intervention by the board of directors, i.e. identifying, acknowledging and dealing with the financial stresses being experienced;
3. the obtaining of the correct professional assistance and guidance and taking the hard but correct decisions to place the company into voluntary business rescue.
4. post commencement finance which is an essential requirement to enable the company to trade during rescue. The earlier you deal with the financial stress, the easier it is to raise PCF, especially from the company's bankers and/or shareholders, or a combination hereof.

It is these companies which appear to have successfully dealt with their financial stress and achieved the desired outcomes.

Thus, early acknowledgement of the financial stress, securing of the right professional advice and the immediate dealing with the issues including the obtaining of post-commencement finance, usually and in most instances does lead to a successful business rescue.