Why Early Intervention is Critical in Turnaround

Michael Fingland

Executive Director and CEO

Early intervention is critical when a company is facing financial difficulty because it provides the best chance of avoiding bankruptcy or other serious consequences. When a company is struggling financially, it can be easy to fall into the trap of hoping things will improve on their own or delaying taking action until it’s too late. However, by intervening early, companies can address their financial problems before they become insurmountable.

One of the main advantages of early intervention is that it allows for more options to be available. When a company is in financial trouble, it may have limited resources and options available. However, by acting quickly, it may be possible to negotiate with creditors or investors, sell assets, or restructure the business in a way that preserves its viability. In contrast, waiting until a company is in a dire financial situation may limit the available options and increase the likelihood of bankruptcy.

Another advantage of early intervention is that it can help preserve a company’s reputation and relationships. Financial problems can be damaging to a company’s reputation, especially if they are not addressed quickly. By taking action early, companies can demonstrate their commitment to addressing their financial problems and their willingness to work with creditors and investors to find a solution. This can help preserve relationships and avoid damaging the company’s reputation in the long term.

In summary, early intervention is critical when a company is in financial difficulty because it provides the best chance of avoiding bankruptcy or other serious consequences. By acting quickly, companies can increase the available options, preserve their reputation and relationships, and address their financial problems before they become insurmountable.

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