Sad as it may sound, the health of a business is not guaranteed forever.  Every business during the course of its existence will experience some level of discomfort, which if not managed on time will lead to severe distress. This can happen to firms of all sizes – small businesses or large corporate.

If remedies are not found immediately, the distress may destroy the value of enterprise and eventually lead to collapse. The reasons may be internal (firm level mostly self inflicted) or external – where market forces dictate. The result will be same if there is no quick action at the strategic level.

Sources of Distress:

a. Serious Illness/Death of entrepreneur resulting in leadership vacuum

b. Conflict among the partners, and other stakeholders

c. Financial distress leading to default- may be due to lack of financial control, project failures, disasters, economic slowdown, Government Policies etc.

The continuous survival and success of a business greatly depend on managing these challenges internally and externally.

Navigating the distress is a very demanding job. One should not avoid confronting it nor resort to shortcuts.

How Does SME Advisors Help?

We assist the distressed firms to overcome such challenges or mitigate the impact.  Our services include:

1. Diagnosing the situation

2. Designing a Blueprint for turning around

3. Appointing Interim CEO to fill the vacuum and / or turnaround professionals to provide expertise

4. Anchoring a conflict resolution process among the partners and /or stake holders

5. Preparing debt restructuring Proposal to Lenders and other Creditors

6. Exploring options under various policies of Govt/RBI/Lenders in case of financial distress

7. Handholding while passing  through the course of turnaround

8. Counselling during the Period of Distress, particularly in case of family run businesses