Corporate Turnaround Consultants Explain Distressed Company Budgeting
As corporate turnaround consultants, we must create budgets under extreme financial conditions. These include business bankruptcy, limited cash and bank calls of the company’s loan.
In these engagements, we use a typical turnaround consultants' budgeting approach. Here is an outline of our procedure:
1. Discover the core business around which you will rebuild your firm. You should do this before we come in. Or, we can help you do this as a separate part of our turnaround consultants work
2. Gather relevant information about your business
3. Create a sales forecast based on the new cash-generating business model
4. Create cost, capital and expense budgets
5. Create a profit and loss forecast
6. Create a balance sheet forecast
7. Create a cash forecast
8. Project out-year estimates for important revenue, expense and balance sheet accounts
As you can see, this is a straightforward approach. Although it looks simple on the surface, it needs the experience of a restructuring specialist to create a reasonable budget that you can live with.
With our experience, we can come into your company and create a budget in about 5 weeks. Your firm will be back on track in just a short time.
If you are still skeptical of our abilities, let us assure you that we follow industry standard practices. In particular, our methods follow closely the turnaround consultants handbook, The Insider Secrets to Saving Your Business.
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