Work Environment
Warren Averett has worked for management of distressed businesses, creditors and equity holders both in and out of court to successful conclusions, and we are comfortable serving in the roles of an advisor, monitoring agent or a receiver depending on the client and the circumstances. We work with businesses in all stages of distress, including:
- Situations where profit quality has diminished
- Businesses experiencing operating losses
- Situations where cash shortfalls are occurring
- Businesses in crisis
- Reorganizations out of court and in Chapter 11 Bankruptcy
- Receiverships and liquidations
The Turnaround Group works in the capacity that best meets the needs of the client and tailors its approach to the situation. Our only objective is to maximize recovery for all stakeholders and we pride ourselves on responsiveness and decisiveness. Whether we are providing advice on specific aspects of the turnaround process or stepping in as managers responsible for developing and implementing the turnaround plan, our team provides the expertise and leadership necessary to achieve the best result for the distressed business.
Success Stories
A third generation manufacturer that had historically been profitable had recently been reporting growing losses resulting in broken covenants on the company's line of credit. Warren Averett was engaged to assist management in determining the cause of the losses and to assist in developing a plan. Warren Averett prepared a product line profitability analysis and determined some products were being sold at negative margins.
The company had recently outsourced the partial production of some of its product lines. While outsourcing was a viable alternative, management had not eliminated the fixed costs in the plant related to the items being outsourced.
