Turn-Around Program
Turn-Around Process:
Cathedral’s efficient process allows a quick assessment of the company’s current situation to make life and death decisions for the going forward status of the company. Cathedral uses the following approach for turn-around situations:
- Situation Assessment
- The initial assessment focuses on the analysis of the company’s financial statements as well as the development of a current and accurate Balance Sheet.
- Short-Term Cash Flow Assessment
- A cash flow forecast is developed to determine whether all operating expenses can be covered prior to debt service.
- Alternatives Assessment
- Based on the cash flow assessment, the company will determine whether to create a going concern or dissolve the company.
- Implementation Plan
- A six month plan will be designed to implement the decision taken.
- Implementation Support
- Regular support is provided to ensure plan implementation through Cathedral’s Board Services platform.
| Case Study: Cathedral assisted a jewelry company through the dissolution of its current wholesale business which experienced difficulties in the economic downturn of 2008. The company chose to strategically re-create themselves as a custom design jeweler through the implementation of this turn-around process. |
