Business owners looking to buy a distressed business are in luck. This article is full of information that will help you make the right decision for your company.
The Brownstein Corporation has been around since 1947. They provide turnaround management and advisory services to companies as well as their stakeholders. Howard Brownstein, President of The Brownstein Corporation, is a true expert when it comes to these types of things. Mr. Brownstein has served as an independent corporate board member for both publicly held and privately-owned companies. He also serves on the Board Leadership Fellow by the National Association of Corporate Directors (NACD). He has his J.D. and M.B.A. degrees from the University of Pennsylvania. This makes him even more credible in this field.
It’s been a tough few years for business owners. The recent economic downturn brought about by COVID-19 means that there will likely be a great deal more distressed businesses on the market. Brownstein firmly believes that these can represent a real and often overlooked opportunity for buyers. This is only if they know what to look out for when purchasing such an enterprise. According to Brownstein, two of the most common symptoms are cash flow issues and management problems. If the management wasn’t rigorous enough, it’s likely that the company is in distress. And oftentimes, businesses will gravitate towards external issues as an explanation for their failure.
The first thing to do is consider the company’s potential value and see if there are any assets under the problems. Make sure to know about its past, present and future so we can make an informed decision about whether or not this purchase is right for you.