At Forthright, we're dedicated to one of the most difficult business challenges: corporate restructuring.
Restructuring is a transition phase when a business uses constrained resources to overcome challenging internal and external forces in order to adapt its "current state" structure (strategy, finances, and operations) to a desired "future state".
The need to restructure usually comes after one or more destabilizing "trigger" events such as an economic downturn, aggressive growth, change in government policy, or an important customer going through restructuring itself.
In our experience, there is a dissonance between large and small company restructuring. Large companies usually successfully restructure. In contrast, too many small and mid size enterprises ("SME's"), do not recover, some ending up in bankruptcy or receivership. We believe this is because large companies have access to more restructuring support .
We focus on working with SME's and believe they are an engine of economic contribution and job creation and should get the support that large companies get.
The two factors that make the SME experience different are:
1) Lack of access to capital
Large companies are often publicly traded and can issue bonds or raise capital from deep pocketed institutions at attractive rates. SME's borrow from banks, friends and family, or "bootstrap", all of which become untenable during times of transition or distress.
2) Lack of access to specialized advice
Large companies can pay professionals who specialize in restructuring and can help steer them through a crisis. SME's and SME advisors often don't know where to turn for specialized advice when it's not "business as usual". In addition, restructuring advice can be expensive when cash must be judiciously managed.
This leads to SME's not getting supported when, quite literally, everything is on the line.
We're here to fix that. You focus on running the business. We'll bring the capital and the advice.