Many companies experience operating or financial difficulties for various reasons. Red Oak often helps struggling or under-performing businesses. We typically work with companies producing and selling a product, rather than those in the preliminary development stage.The revitalization project usually involves developing and implementing the following plans:
The Recovery Plan outlines the necessary steps to be taken to correct the major, pressing problems confronting the client company to arrest its decline and stabilize its business situation in preparation for the implementation of measures to promote and sustain the growth.
The Growth Plan outlines the steps to be taken to rebuild the company’s business and return it to sustained profitability. The Growth Plan will normally address such matters as the reorganization of the management structure, possible recruitment and hiring of necessary long-term management, and creation of desirable employee incentive programs. We typically undertake:
- a critical analysis of the product line,
- development of strategies for market penetration,
- design and acquisition of efficient plant and equipment,
- develop long-term financing plan and capital sources.
The ability to formulate an Exit Plan for a prospective client is a critical factor in determining whether the assignment should be undertaken. The Exit Plan must identify feasible methods for liquidation or exit from the business.
The Contingency Plan must reflect the known problems facing the client company throughout the recovery and growth phase and set forth alternative responses to dealing with those problems should any one of them not respond as anticipated to the actions taken.