Our friends at Revitalization Partners help companies make better business decisions. Here is a blog from their newsletter about turnaround business advisors and bank regulations. At Juniper Capital, we are committed to sharing business advice that helps you achieve success. We specialize in real estate investments with private money loans in Washington and the greater Pacific Northwest. Share your thoughts on this blog, so we can continue to provide you with quality information for operating your business:

Like most turnaround groups, Revitalization Partners has a difficult time getting some clients to open up. While we’re attempting to save a business, the owner is usually too upset or emotional to focus on the work that needs to be executed. Once things are back on track, the owners/managers just want to forget that they almost lost everything.

As Joel Getzler, a New York based turnaround professional stated: “It’s one thing to run a company when things are going well; it takes a totally different mindset when things aren’t going well.”

Even though the economy is doing well, things are not going as well for thousands of smaller companies. Revised banking regulations have impacted banks’ ability to loan to companies with marginal or no profits. As a result, banking relationships that many businesses have relied on for years are in the process of being sundered.

We help businesses buy time with banks or find a new lender. However, most optimistic entrepreneurs are certain that if the bank just understood how good things were going to be in the future, they would want to keep the company’s business. And nothing is further from the truth.

The bank, in most cases, has heard the stories and projections. And in most cases, the projections have been missed in the past. Credibility on the part of the company is now poor and the bank has made its decision. The important thing is to present the company in a way that will be favorable to a new lender.

One of our clients, having lost money for several years, was told by their bank that they needed to find a new lender. They received the notice in Month 1, but because of the blind optimism, they did not really believe the bank would revoke their loans. In Month 4, when they received the final 30 day notice, they finally asked us for help.

While being successful in finding them a new lender, it took well into Month 8. Without third party credibility and new detailed financial projections that the company was able to meet, the bank would not have extended the loan, nor would a new lender have been interested. Business owners and managers don’t suddenly become incompetent, but too often they fail to realize the rapid changes affecting their business. Banking regulations are one of these major changes.

A turnaround process can sometimes be long and painful, especially if you’ve spent years building a successful business. It’s important to talk with a qualified advisor as soon as you think there may be a problem. Many companies could have been saved if optimistic entrepreneurs had asked for advice earlier. We repeatedly hear from clients, “I wish we had called you sooner.” Honestly, so do we.

Choose advisors that you and the financial community trust and are comfortable communicating with. Make certain that the group you work with has been highly successful in working with banks and finding new lenders. Once you have selected a professional advisor, be prepared to take their advice and follow the steps they outline. Your business depends on it.

Revitalization Partners is a Pacific Northwest business advisory and restructuring management firm with a track record of achieving the best possible outcomes for their clients. They specialize in improving the operational and financial results of companies and providing hands-on expertise in virtually every circumstance, with a focus on small and mid-market organizations. Contact Revitalization Partners if you want the best resolution in the fastest time with the highest possible return.

Revitalization Partners… when a company is worth saving.