Companies contending with potential bankruptcy deal with escalating debt, cash-flow shortages, and many other pressures. Turnaround and receivership offer a path back to stability before these issues become irreversible, and Chapter 11 becomes inevitable.
Here’s how turnaround and receivership differ:
Turnaround: Initiated by the owner of a business to stave off collapse.
Receivership: Occurs when a court or lender appoints a “receiver” to take control of a company’s assets and protect the interests of its creditors.
In both processes, an experienced outside consultant can help the company reverse course.
Navigating Complexity, Finding Clarity
Turnaround and receivership consultants’ goals differ, with turnaround consulting focused on restoring a business’s financial health and receivership consulting prioritizing financial recovery for the business’s creditors. However, the starting point for each remains the same: Both must uncover the business’s true financial picture. This requires solid forensic accounting that identifies the most pressing problems and brings clarity to complex issues via asset tracing, transfer analysis, fraud detection, as well as experience with debt restructuring and other tactics.
A Diverse, Experienced Team Can Make the Difference
Financial issues are rarely simple or contained to just one area of a business. A liquidity crisis, for example, can trigger tax complications and litigation and even raise questions about asset transfers. Enlisting the Rehmann team, with its diverse range of specialties under one roof, including accounting, valuation, tax, and legal support, ensures you stay on top of every situation as it evolves and before problems compound.
Our deep bench of seasoned executives and industry experts (boasting deep knowledge and experience in oil and gas, healthcare, automotive and general manufacturing, agricultural, construction, real estate, and more) have served in insolvent situations, making a difference for many companies facing mounting challenges.
We’re Ready to Step in and Help
No matter the size of your business, when you partner with Rehmann to guide your business through turnaround or receivership, you gain a passionate team that’s ready and able to help the moment you need us.
Find out more about Rehmann’s Turnaround and Receivership approach, services, and team.