Question

Please answer the below question in detail. I can't award credit if the question is not answered fully.

Question: If you analyze a company's current financial performance with higher possibility to file bankruptcy, how can you help a company to turn around?

Answer 1

There are certain ways in which company can be turn around from filing bankruptcy -

• Changing management structure
  Business not performing well may need a change of management, new people etc. This can sometimes require harsh and tough decision making.
  
• Expert Advice
  They are specialised person in the field of business revitalizing . Many a times hiring expert can reduce the need to change the managment.
  
• Strategic Plan
  When you are targeting a turnaround mission you have to be practical about the timeline you give yourself. Figure out if your plans are well in place and the business is indeed turning around.
  
• Short term cash flow
  Arrange for alternative short term cash flow and ask for longer payment terms from the vendor. Company's ability to reduce debtors and extend vendors will provide an additional source of cash to help fund short-term needs, including inventory.