Have you tried too many things to improve your business but you are not satisfied with the results? Did you give your best but there's still no improvement? Are you having difficulty making payments to creditors? A firm that does not generate enough cash flow to make a contractually required payment such as an interest payment will experience financial distress.
The in-play of corporate Finance Assessment is to help access series of competencies, a prediction of future performances.
Improve your company’s balance sheet to help you understand your financial story’s setting and characters and how they work together to achieve profitability.
Large firms with varied assets are more likely to successfully restructure as they are better able to survive substantial losses and have sufficient assets.
Financial distress is a situation where firm’s operating cash flows are not sufficient to satisfy current obligations like trade credits or interest expenses.Financial distress may lead a firm to default on a contract, and it may involve financial restructuring between the firm, its creditors, and its equity investors. Usually the firm is forced to take actions that it would not have taken if it had sufficient cash flow.
Financially distressed firms will face some type of cash liquidity problem. When a firm recognizes that it is in danger of financial distress, it is vital that it responds immediately by taking corrective measures to enhance efficiency and control costs.
Consultinghouse creates avenue for financial restructuring for financially distressed companies. Financial restructuring changes the firm’s capital structure in terms of leverage which seeks to reduce payment pressures through dividend cuts or issuance of shares to retain or generate funds.