L Erasmus & Associates
Business Consultants

Options to consider when experiencing Financial Distress

Our experienced Advisory Team assist financially distressed businesses to develop and implement tailored, innovative and comprehensive solutions to secure the most optimal way forward whilst simultaneously managing risks. 

The solutions can be implemented and achieved via various formal and/or informal processes which includes:


Business Turnaround

Business Turnaround Strategies focus on assisting struggling businesses plan for the short- and/or long term financial recovery program rather than considering formal insolvency processes such as Business Rescue or Liquidation to ensure its survival and/or the successful sale of its assets.

It entails the implementation of operational, strategic and organisational changes to remedy underperformance, and can be successfully implemented if "problems" are timeously identified and acknowledged by the directors of the company when cash flow constraints have not yet caused payment default to creditors.  


Business Restructuring

Business Restructuring refers to a range of formal processes aimed at helping financially distressed businesses to resolve the situation, with the outcome varying depending on the business' circumstances and ultimate objectives.

Restructuring can be achieved through one, or a combination of the following:

  • Recapitalising the company through loan- or equity capital
  • Wind-down which is aimed at winding down the business as effectively as possible in a way that derives the maximum benefit for all stakeholders. It can include the closure and exit from loss generating contracts and/or the liquidation of non-performing, non-saleable assets, and/or the minimisation of job losses.
  • Compromise agreements with creditors, which could be general applicable to all creditors or specifically negotiated with one or more individual creditors.
  • Business Rescue 


Do not wait!

Let us assist you to consider the various available options, ... before it is too late!