Structured Workouts

In the event that a company approaches insolvency, a structured work out can avoid the paralysis and expense of Chapter 11. A good workout plan can be “sold” to creditors and all may be better off as Bankruptcy Lawyers and Consultants cost $150 to $250 per hour, generating fees that sometimes equal the cash that could be used to initially resolve the liquidity problems.

An analysis using VentureCADTM and VentureEQUITYTM is a powerful way to portray scenarios of the operation, its financial statements and cashflows, and the effects of dilution on existing and new equity owners, frequently the source of potential workout funding.