Recapitalization and Cash Management
Odyssey focuses on advising parties in complex distressed situations which require sophisticated financial solutions. Our team of seasoned professionals has spent their careers developing the skills necessary to manage these difficult situations.
Recapitalizations
Our team stabilizes over-leveraged companies, reassuring creditors, and restructuring a company's balance sheet. These recapitalizations resulted in difficult assignments where anything less than success would have likely resulted in liquidation. We consistently manage successful turnarounds under challenging circumstances.
Odyssey has been engaged by private equity firms, venture capital firms, traditional corporations, and family-owned businesses to place debt or equity as well as negotiate new terms with existing stakeholders.
Cash Management
A troubled company's most vital resource is its liquidity, not only to satisfy its debts as they come due, but also to instill confidence to its customers, suppliers, and lenders. Successful liquidity management provides a company with time to explore all of its restructuring options. However, companies with no liquidity are typically left to decide between sale and liquidation.
Our experienced professionals use proprietary tools and methods to create a collaborative and results focused "cash culture". Odyssey can differentiate itself from nearly all other firms because our staff has used these skills while operating company as c-level executives. Some of the issues we focus on are:
- Immediate Liquidity - Troubled companies that can create liquidity through working capital management and cost reductions can buy time to consensual solutions with their creditors.
- Cash Generation - Generating and managing cash is one of the most crucial components of a turnaround. We work with management to focus on quickly understanding how cash is generated and by placing an urgent emphasis on improving collections velocity and reducing disbursements. We will identify opportunities to rebalance those processes to better manage and ultimately build cash.
- Cash Flow Reporting - During a crisis, creditors demand actively tracking and forecasting of cash flows. The cash forecast becomes a tool that enables a company to communicate with its bankers and constituencies as well as a critical operating tool. It enables swift action and organizational accountability through measured results.
Odyssey understands that cash concerns cause sleepless nights. Our team members have lived through that experience as both managers and advisors and, most importantly, we have successfully lead companies out of those circumstances.