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The professional team members at Grant Thornton Limited, with combined business experience of 80+ years, are knowledgeable in all aspects of business turnarounds, no matter where or in what industry you operate.

Can the Situation Be Rectified?

The signs of potential distress are evident prior to actual failure, and a stakeholder may be able to take corrective action before failure finally occurs. The situation can be salvaged if the company is profitable and if the cause of difficulty is financial management or if the underlying cause of distress is not external.

Many companies can be preserved as going concerns, despite difficulties caused by past mistakes, depending upon the degree of financial difficulty.

Will a Reorganization Help?

It may be in the best interests of all concerned to reorganize a company. The decision to go with a corporate reorganization must be based on the likely future profitability of the company. By changing its capital structure, the reorganization effort involves the reduction of fixed charges by substituting equity and limited-income securities for fixed-income securities. If the present value of the company as a going concern exceeds its liquidating value, only then will a business reorganization be worthwhile from the standpoint of stakeholders.

Steps of a Reorganization

In formulating a reorganization plan, our professionals generally follow 3 steps:

  • Determination of the total valuation of the reorganized company
  • Formulation of a new capital structure
  • Assignment of valuation to the old securities in exchange for the new securities

Contact Us

To discuss whether or not a business restructuring is right for your situation, call Grant Thornton Limited today. Take advantage of our free initial consultation. Our mission is to provide solutions for those clients and stakeholders in our engagements.

If you want more information on any of the provided information, feel free to give us a call anytime! Or stop by one of our 5 locations for business turnarounds in VancouverSurreyVernonPrince George or Victoria to schedule your free consultation!