Liability Recovery Consulting
Liability Recovery Consulting is provided by Lance Woodworth and Mike Hass. They have a combined seventy years experience that includes: participating in equity and debt financing, operations management, executive management and ownership conflicts, deal structure and negotiation, crisis management, problem resolution, and creative strategic thinking.
LRC services are designed to stop a business from getting to the point of financial and economic crisis where things are placed in the hands of the company's attorney which may lead to reorganization or bankruptcy. Services can be provided if necessary even during the due process bankruptcy stage. The objective is to bring an expedient resolution during a financial crisis between the business and debtors or creditors. The target time frame is to do this in 90 days or less.
Alleviating the problems that arise from a deteriorating business situation is required for any outstanding liability particularly when the Company's Balance Sheet is out of balance. The out of balance may be the result of:
- Long term or short term debt that is past due for a period of time where the borrower may be in default;
- Stockholder and bank debt that is not able to be paid back as intended and is a potential legal action situation;
- Accounts Receivable where vendors have failed to pay in a timely manner or have experienced their own company financial crisis and they may not be able to pay as agreed;
All of these create added stress for the company's owners and management and can trickle down quickly to impact employee-management and company-customer relationships.
From the Company side. Any company, private or public, regardless of their revenue level or type of business may hit a point where they encounter a severe business problem that leads to a financial crisis. This can cause cash flow shortage resulting in increased pressure and stress on the company owners and management. It may come from to high a debt service requirement, late payment of Accounts Receivable or reduced sales. When these situations occur the owners and management are faced with either hiring a collection agency or getting their attorney, accountant and/or other management staff very active in collecting the money. The single largest negative to doing this is the business owner becomes distracted form running and growing the business. The second is keeping lenders and vendors from taking legal action against the company and possibly forcing a reorganization or bankruptcy and change in management.
From the Bank, Private Debt, Creditor, and Vendor side. When a company reaches a point of failing to make payments the situation can deteriorate within a few months or in some sever cases in a few weeks. At this point the bank and creditors are faced with the same situation as the Company, except they usually restrain from taking legal action. Just knowing they may need to hire an attorney and spend money creates added stress of them just as it does for the company.
They know the company will usually defend its position and wind up paying for their attorney, court costs and other services to buy time, which in many cases may be justified. They also do this to try and minimize their potential losses based on what they owe. Many times a company will take the path of hiding the facts and avoiding communicating with the bank or vendor. Many times this will actually hurt the relationship and not work to their advantage and it can exacerbate the situation with the bank or vendor even more.
LRC's Client indicators:
1. Intervention is needed on behalf of the Company or debtor/creditor;
2. Help may be needed by the Company with crisis management expertise from a third party;
3. Facilitation may be needed along with legal action during the liability recovery process;
4. Negotiations by an independent non-legal representative can strengthen the liability recovery process; and
5. Guidance is needed for Company management on the steps to take and attitude needed to resolve issues.
LRC's Clients: One or many of these identifying profile characteristics usually require service ASAP:
1. Public Company stock loss of value, reduced earnings, per quarter comparative reduced sales;
2. Private Company ownership conflict and/or management split resulting in a loss in stock value;
3. $250,000 - $50,000,000 in sales/revenue exhibit cash flow strains in daily operations;
4. No CFO or experienced accountant advising overseeing the Company financial's; or
5. Loans overdue or ballooned and not being paid as agreed.
LRC Fees: An up front retainer is required that is discussed in the initial meeting. It is based on the magnitude of the problem, the location as in-state or national, projected out of pocket expenses, and some portion for the initial project planning and strategy stage. All retainers charged are deducted from the Success Completion Fee. This is for successfully accomplishing the objectives of the agreement.
All contacts remain "Confidential". To use the LRC service please call T: 407-982-1434 or send an email to: larehope@cfl.rr.com. Please ask for "Lance" when you call.
