When a company hits a financial rough patch, one of the most important dynamics to understand is what will happen to cash flow in the next few months. Companies are left to ponder how bad will it get, how much money is needed and how long will the downturn last? These are critical questions that need to be understood by management as well as supporting stakeholders such as the owners, lenders and vendors.

Silverman Consulting recognizes that understanding cash flow is a critical step in a company’s ultimate journey of returning to profitability. The professionals at Silverman Consulting are adept at quickly getting the financial facts and presenting them in a meaningful way to highlight operational and financial requirements such as funding payroll and real estate taxes or building inventory for peak sales demand.

Our cash flow modeling tool not only defines the forecasted cash sources and uses on a weekly basis, but also rolls forward critical balance sheet items such as accounts receivable, inventory, vendor payables and revolving debt in order to bridge the implied gain/loss. We find this helps stakeholders clearly understand why the cash forecast is depicting what it is and the implications of these findings to the organization. This financial tool can then be used as a means to garner the necessary funding from stakeholders to operate the business during this critical time.

When people hear the title of Chief Restructuring Officer, or "CRO", they immediately think a company is insolvent. While this may be the case, there are other scenarios that warrant a CRO role at a company. At a minimum, a CRO can provide more detailed oversight and management of a company that needs additional guidance. More thoroughly, a CRO reports to the Board of Directors and is given primary fiduciary control to run the day-to-day operations of the business. In this capacity, our responsibility is not only to run the business, but also to maximize profitability and find ways to structure the business in a manner that benefits all stakeholders.

Silverman Consulting professionals have acted as CRO for numerous clients and assisted them in regaining credibility with lenders, equity holders and other stakeholders. We work collectively with senior management to understand the crises at hand and identify possible solutions. With those facts in mind, we can efficiently evaluate the best options available and advise the Board of Directors on the best course of action.

Creditors and lenders are key stakeholders of any business. Developing and maintaining strong relationships with these important constituents is vital for the long-term viability of a business, especially in restructuring situations. A well-devised restructuring plan exhibits the tools and skills management possesses to fulfill its obligations towards lenders and creditors. A cash flow forecast is often the focal point of a restructuring plan which, in addition to fostering communication with lenders and creditors, serves as an operating tool for management. Successful implementation of any restructuring plan requires effective and timely communication with lenders and creditors to obtain their “buy-in”.

At Silverman Consulting, our professionals have extensive experience in building and communicating robust, fact-based, restructuring plans. We evaluate and prioritize all options available to our clients, including cost reduction initiatives, reorganizations, and recapitalizations. Our greatest strength in creditor management is our expertise in conveying to lenders and creditors how their support during the restructuring process is in their best interest and that of our clients.

In today’s business world of increasing complexity and market uncertainty, companies face a growing number of new and unprecedented challenges. Whether facing these challenges today or in the future, a sound analysis and understanding of your organization’s liquidity needs is vital to its continued success. Often times analyzing past trends and liquidity demands can help better position an organization for the hurdles they face ahead. In addition to an accurate understanding of future performance, an organization should understand and consider the various pathways available to meet its liquidity demands. The proper solution may exist via modification of existing operations, refinancing of current debt/liquidity sources, or in the form of a debt or equity infusion. Given the complexity of options to consider, a firm can benefit greatly from an outside advisor to help them create the proper strategic plan.

Since it’s founding almost 40 years ago, Silverman Consulting has worked with hundreds of clients to assist them in understanding and improving liquidity. Whether helping to provide clarity of an organization’s current needs or preparing reliable projections to uncover potential needs in the future, Silverman Consulting has extensive experience assisting clients in many disciplines. Whether or not your organization currently has an established set of liquidity management tools, Silverman Consulting can provide valuable assistance in developing and refreshing these liquidity strategies in order to improve profitability and withstand cash-related shortages.

Whether your Company is comfortably profitable or in dire need of change, Silverman Consulting can be relied upon to quickly assess your business and recommend appropriate changes. We review all layers of the organization, from back-office support functions to the plant floor, in order to identify areas in need of improvement. Given the vast amount of financial resources and human capital dedicated to the production of goods and services, there are many ways we can assist your company. Our experienced team has a deep understanding of operational metrics and procedures as well as the financial acumen to accompany any strategic plan to ensure success. Depending on the industry, product or service, the metrics we address will fluctuate. However, one goal remains clear - immediately improve profitability.

Our team works directly with management to identify synergies, cost reduction initiatives, revenue enhancement opportunities and proper allocation of human capital. Our process begins with fact gathering as we seek to intimately understand your business and processes. Our goal is preserve the culture and identity of your product or service while finding a more cost effective production or implementation solution. Shortly after we know the financial and operational landscape of your company, we work with management to identify solutions that will create operational efficiencies. We aim to create sustainable, systemic changes in your business that will allow you to become more profitable than before.

Silverman Consulting has a deep respect for individuals with an entrepreneurial spirit who have been able to turn their vision into reality and grow a sustainable business. These are the type of people who make our country great. Regardless of whether a company is profitable or under performing, every business owner could stand to make more money.

We understand a company is the sum of all the decisions stakeholders make as they attempt to create a successful enterprise. These decisions include which customers or products to pursue, which machines to buy, how many people to hire, and how much debt to take on. The culmination of all these decisions either puts the company in a great position for sustainable success or leaves areas that need to be improved to ensure viability down the road.

Silverman Consulting develops a strong rapport with the management team to identify those aspects of the business that are operating effectively and which ones need to be refined. If your company is asking questions like the ones below, our services can be helpful to help improve profitability.

Was a customer or a product priced low to land the deal and now it is time to ask for a price increase?

Do you feel like your competitors have better margins and you need to analyze how to reduce material, labor or overhead costs?

Was a decision made to expand into a region or a line of business only to find that the opportunity did not materialize as expected?

To the extent a realignment of the business can enhance profitability, Silverman Consulting is fully committed to making sure all stakeholders win. The Silverman team uses its independence to critically think through the facts with management. Our process allows us to work with those facts to develop a strategy to improve the overall business model and allow the company to enhance profits. In many cases, this allows us to also simplify the business.