In the course of conducting their commercial activities in the market, some companies accumulate huge losses. The officials of these businesses should do whatever they can to reverse this trend. Otherwise, the investors of these enterprises may arise questions regard the financial stability of these establishments. After all, they want to make sure their money is safe and earns a lucrative return. Even lenders and creditors may voice their resentment over the state of affairs of these establishments. In the worst-case scenario, the managers of these organizations may have to the file for bankruptcy. This is why they need to take the necessary step to implement suitable corporate reconstruction schemes.
Arnon Dror Creo Americas – When do companies need to implement corporate reconstruction schemes?
Arnon Dror is a class apart in the world of international business and finance. Hardly any professionals specializing in this area can claim to exceed his level of achievement. He has over 2 decades of valuable experience under his belt. During this career, this MBA graduate has been successful in discharging the post of Vice President. However, unlike his contemporaries, he has the distinction of occupying this position in numerous companies. Presstek Inc., Scitex, Creo Inc., Kodak, Xerox and Creo Americas are some of these establishments. The people operating such establishments are grateful for his services. They hold him responsible for turning their concerns from loss-making units to profit-generating entities. They even acknowledge his expertise extends to many diverse fields. These include cash flow management, ERP integration, international taxation, IT systems, strategic planning, and internal control.
The Arnon Dror Creo Americas team of specialists say corporate reconstruction is a necessity for some companies. The officials of such companies need to implement such schemes when their concerns incur persistent losses. It’s the only way they can retain the financial stability of their establishments in the market. However, they should communicate their decisions to take such a step with relevant stakeholders of such concerns. This is because it is going to affect their interests. However, it’s a much better alternative to filing an application for bankruptcy with the regulatory authorities. Opting for this course of action doesn’t benefit anyone. The professionals point out the following 2 important reasons for executing such plans:
Assets which these companies hold reflect a higher value than the actual worth
The officials may find that the assets of their company don’t reflect their true market values. These managers may decide to sell such property or account receivable to the highest bidder. However, it very unlikely there get a price equivalent to what their book of accounts shows. This is they need to revalue them to their actual worth. This is possible only through corporate reconstruction.
Presence of fictitious and excess liabilities
Many of these concerns’ balance sheets may record fictitious assets. These could be in the form of preliminary expenses, patents, or goodwill. These inflate the book profits for no apparent reason. Under a suitable corporate reconstruction scheme, it is possible to write them off. Again, such establishment may have excess liabilities which have to pay off.
The Arnon Dror International team of professionals say corporate reconstruction is a lifesaver for some companies. Schemes falling under this category can help such concerns regain the competitive edge in the market. They need to look at above 2 important reasons to implement such plans. It’s a decision they won’t regret taking.
