Having professional experience around to manage through a “crisis” becomes invaluable. It is never “fun”, but with Colonnade the problem can be shared.
Management Blinded by Crisis
It is usually difficult for an owner to see the depth of problems, given they may be masked by daily ‘fire-fighting’. Issues reveal subtly at first, where senior management are too immersed in troubleshooting to be able to see what is really happening; at other times, it is simply easier just to dismiss the reality.
Identify the Problems
The following signals indicate possible problems: diminishing cash, sales & margins; increasing inability to meet liabilities; demotivated staff; funding of working capital with creditor cash.
‘Put out the Fire’
Colonnade look at the numbers,, assess and control cash, negotiate with suppliers and other creditors, collect debts, broker matters with staff, perform HR work, handle solicitors and insurers against claims, deal with HMRC issues, hold the bank and other lenders at bay, speak with existing clients and generally do everything possible at a CFO level to breathe life back into a struggling business, with the view to guide it through a crisis.
A meeting with Colonnade at the onset of the earliest such signs will provide a full analysis of all the options open and provide direction to either rectify the issues by intervention, or consider the appropriateness of a rescue package, or even consider a complete restructuring (see the section – Corporate Restructure).