You may own a company that is in crisis or distress and need to hire experts to assist you in securing the future of your company.

Alternatively, you may be a banker or lender with a loan in risk of default, you may be counsel in a bankruptcy case, or you may be a CPA or attorney to a client who owns a distressed company. 

ClearRidge Advisors has the expertise to help the company through the troubled times and will create a clear plan of continued positive action when the turnaround is complete.

In restructuring, bankruptcy and turnaround projects, we prepare for a divestiture of assets or a sale of the company in a parallel process to the main project. In the unlikely event that stakeholders determine that divestiture is the best way to maximize value, we are already position to go to market . Rather than delay a further 60 or 90 days to get ready for a sale, we are already prepared to go to market and are able to move very quickly. In distressed situations, time is money.

We are founding board members of the Oklahoma Chapter of the Turnaround Management Association.

Bruce Jones, one of our Managing Directors is a Certified Turnaround Professional.

According to Forbes:
“It takes a grueling accreditation process, administered by the Association of Certified Turnaround Professionals (ACTP), a business association established in 1988, to become a CTP. And while the first were given the stamp of approval in 1994, there are still only about 300 worldwide today. It's a pretty elite club.

What does it take to become a certified turnaround pro? A lot. Prospective CTPs must have five years of consulting work under their belt, with a minimum of three years focused on corporate renewal. They must provide three client case studies and names of individuals who can verify the work, and submit to a background check. Further, they must pass a three-part examination on management, law, finance and accounting. Lastly, assuming all of these hurdles are passed, the applicants' names are posted in The Journal of Corporate Renewal for 60 days to solicit objections.

Each person who achieves certification must complete at least 125 hours of continuing education over a five-year period.” Link to Full Article

Role of the Turnaround Professional

Credibility. If the company is in trouble, the management may have lost credibility with employees, customers, lenders, suppliers, and shareholders.  By openly acknowledging and addressing the problem by hiring ClearRidge, you will find many of these groups will give you more time, flexibility and understanding to resolve the crisis and turnaround the company.

Direct Action. Turnaround Professionals are more direct in their approach and decisive in their recommendations and actions than a typical business consultant. They have managed businesses amidst the chaos, stress and uncertainties of a failing business many times before and are aware that action needs to be taken quickly to stem further losses and get the business on the right track.

Negotiator: Turnaround Professionals will negotiate with lenders and suppliers.

Acting CEO. ClearRidge will act as both coach and quarterback during the turnaround. We will work with each division to ensure that every function in the company is making the changes necessary to avert the crisis. We will set clear goals for individuals, divisions and business units.  We have to act quickly establish credibility, integrity and leadership in the crisis.

Communication. Word of trouble travels quickly, and the telephone has a tendency to ring often from concerned outsiders. In most cases the company staff is not ready to deal with the environment that trouble brings. The Turnaround Professional is the best equipped to serve as the business' temporary nerve center.

Knowledge of Sources of Financing. ClearRidge uses its network of debt and equity sources familiar with financing of troubled businesses to assist in securing any necessary financing.

Industry Expert or Generalist? In many instances the last thing a troubled business needs is another industry expert. Expert industry knowledge is already in plentiful supply within the company. You need a generalist who has a breadth of experience in every type of crisis situation.  Managers will likely cooperate better with a generalist than a specialist.

We are not there to explain your industry to you; we are there to take action to resolve the crisis. This rarely has anything to do with expert knowledge of your industry, it is a deep understanding of how to turnaround a troubled company. The causes and remedies are universal to all types of company.

At the same time, we do recognize when expertise beyond our experience is required.  We don’t know the answer to all your questions, but we always know someone who does.

ClearRidge Turnaround Service

We ask the tough questions. What is the purpose of the business, should it be saved, why should it be saved, and should it be saved in all circumstances? Is the business viable, is there a core business which can be saved or be the source of emerging from the crisis, is there sufficient capital available to fuel the recovery, is existing management capable of leading the company, is there sufficient confidence in existing management, do we need to replace key employees?

We gather information, evaluate it for accuracy, and analyze it quickly so that those initial questions can be addressed openly and honestly. At this stage, should we plan for an orderly liquidation, try and achieve a fair settlement for creditors and preserve as much of the owner’s personal assets as possible?

Plan the Recovery:
•    Identify and analyze alternative courses of action.
•    Begin a critical assessment of all internal external processes and operations.
•    Quantify the company's strengths and weaknesses.

Get to Work:
•    Identify causes of the crisis, which may include: weak economy; Over-ambitious sales projections; poor strategic choices; poor execution of a good strategy; high operating costs; high fixed costs that reduce flexibility; insufficient capital; unsuccessful R&D projects; competitor threat; excessive debt burden; inadequate financial controls; poor facilities; staffing levels; staff relationships.
•    If necessary, appoint our Turnaround Professional as the Chief Financial Officer or Restructuring Officer to handle all negotiations with creditors.
•    Work with all levels of management in the preparation of a comprehensive, detailed recovery plan.
•    Implement the plan, with a highly structured timeline and goals.
•    Management Change: where necessary, recruit new management.
•    Divestment of certain assets
•    Reduce costs and increase profit margins
•    Target positive cash flow
•    Adjust the mix of products and services to target sustained profitability
•    Celebrate success of the turnaround, reward employees, ensure systems and processes are in place to continue improving performance after our departure
•    ClearRidge exits the business and hands over reigns to the new management.

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