In many cases, responsible parties are the last to acknowledge that a business is in distress. Whether this is a result of denial or merely the effect of being too close to a situation to be appropriately objective, senior lenders and owners often fail to recognize declining sales, financial losses, management and owner disputes, succession conflicts, and uncertain corporate direction for the signs of distress that they are.
Whether a business acts on the first sign of financial or organizational stress, or waits until a crisis occurs before seeking outside assistance, Kinsella Group can help. While early, preemptive action is preferable, many of the most troubled companies can be returned to profitability by taking swift, appropriate measures.
In order to help businesses take rapid, effective action, Kinsella Group offers one- and two-day, reasonably priced assessments that give lenders or investors the opportunity to determine true credit or investment risk at modest cost.
In addition to working directly with our clients to restore financial and operational viability, Kinsella Group has successfully negotiated effective options and resolutions with lenders, vendors, leasing companies, the Internal Revenue Service, state taxing authorities, minority equity holders and customers, among other interested parties.
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For a period of nine months, the entrepreneurial leader of a Florida-based regional commercial electrical contractor was inactive in the business, while recovering from injuries sustained in a vehicle accident. During this time, interim management failed to operate the business effectively, entering into major, unprofitable contracts outside of the company’s core competencies and exercising poor financial controls. By the time the head of the company had recovered, the business was in distress and the senior lender was pushing for liquidation. Kinsella Group helped management develop and execute a plan to bring ongoing unprofitable projects to break-even status while reestablishing financial controls, including replacing the controller and intense balance sheet management. Intelligent timing of payments to vendors with payments from customers improved cash flow which, coupled with operational improvements, convinced the lender to provide additional funding. The company, refocused on its core competencies, returned to growth and profitability.
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