In today’s market, struggling or capital structure challenged companies need to understand that there are additional layers of complexity in any turnaround plan. Since the financial crisis, banks are subject to greater regulatory scrutiny and formulaic decision making. In many cases bank “work-out” groups are constrained in their flexibility and may be forced to push for liquidation even against their own financial interests. You could also find new investors in the capital structure, motivated to push for an uneconomic solution for you (but advantageous for them) as part of a different agenda.
Valuations can move quickly, based on any number of industry dynamics, lender constraints, or investor returns expectations. At Headwaters we have the ability to work through these complexities to put the client in a position to reach an attractive solution for our client.
The Headwaters team brings decades of broad, large firm, hands-on experience to clients facing operational and financial obstacles.