Tuesday, September 25, 2012
When You Need A Partnership Rescue
One of the first things to do is to recognise that there's a problem, and then to identify wherever those problems are specifically. In the beginning, you don't need to call in a pricey management consultant or business guru to get this done, you can also get a pre pack insolvency if you want; if the business is really a partnership then it is like that any one of the partners or perhaps indeed any member of the senior management team will have a 'feel' for what went wrong and the places that need looking at (either with a view to changing them, scrapping them or selling them off if they are worth something to another business).
Every suffering business has part of it which is good, and from this the feeders of the new business may be salvaged. A partnership rescue could be made to work by identifying what it is that needs to be rescued and what needs to be written away; as in many other walks of life, the bad parts will only hamper the growth of the good parts.
In some cases you will know what type the business needs to take following the rejuvenation procedure has been completed; to some extent this is often a model to aim for as part of what is known as a Pre-Pack Administration.
Sometimes a pre-pack is suitable as part of the solution throughout a partnership rescue. If this can be sold back to the management which might or may not need to involve funding or refinancing, with the best sources of funding which are currently available, then the business can continue to thrive and grow, and provide a continuing income for your owners as well as employment for your staff.
This kind of partnership rescue is also healthful for the business community in general both locally and in terms of industry sector, as it implies continuity for suppliers and customers alike.
Many struggling but otherwise perfectly viable businesses fail because people running the business get bad advice or no advice at all. It is important to realise that help is required early on if the best is usually to be made of such an opportunity.
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