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Aaronson Schantz Beiley P.A. | A Miami-based, AV rated boutique law firm comprised of law professionals with over 135 years combined experience providing effective and cost-efficient legal services in the areas of commercial and complex business litigation, bankruptcy, business restructuring and insolvency law.

Business Workouts: An Alternative to Bankruptcy

Serving Miami, Fort Lauderdale, Coral Gables and all of South Florida

459510525The attorneys at the Law Offices of Aaronson Schantz Beiley P.A., in Miami, Florida, often work with small and medium-sized businesses that are dealing with rising debt and finding it difficult to make their company productive. Although many businesses elect to file for bankruptcy, others find that a business workout can supply them with the time and resources they need to turn their enterprise around. Business workouts are less costly and complicated than a Chapter 11 bankruptcy. They can help a company get back on its feet, meet its financial obligations, and eventually prosper again.

Business Workouts: The Basics

Business workouts involve companies devising new business plans that restructure their debt in a manner that will allow them to meet their responsibilities to creditors while also giving them the opportunity to regain their footing and become productive again. The implementation of new strategies is essential to the success of your business workout. These strategies are focused on solving problems related to your rising debt, increasing productivity, and utilizing all business assets effectively.

The new business plan must provide creditors with proof that it will be viable and agreements regarding new payment arrangements with and repayment of each creditor must be made. Creditors will often agree to a business workout if they perceive that it will benefit them more than if the struggling company is liquidated, its assets sold, and the proceeds distributed to those to whom the company owes money. In order to prove that this is possible, your business workout will have to be based on facts related to your business, accurate projections, and reasonable proposals concerning your debt.

The Process

Specifically, the process involved in business workouts is geared towards developing a business plan that includes new strategies, methods, and tactics focusing on ensuring the company’s profitability. That new business plan must prove that the business workout is viable.

There are four basic parts to this process:

  1. Analysis ofthe company’s debt
  2. Analysis of the company’s financial situation
  3. Development of the business workout
  4. Implementation of the workout

The Law Offices of Aaronson Schantz Beiley P.A., can assist you in each of these steps. The first step involves an examination of company debt that includes the type and amount of each debt, the urgency in terms of needing to pay each debt, and a consideration of any unseen complications and issues related to such. Often businesses are adept in addressing the first two issues, but they find it difficult to project instances that may complicate their present and future situation. It is essential that this be thoroughly investigated.

Step two focuses on the company’s assets, ready cash, and investments, as well as future productivity. The first three elements in this step may be readily and accurately identified, while the final element, future productivity, must be based on trends, demographics, economic indicators and other related matters that may affect the business.

The third step involves the business workout plan being developed and issues related to debt being negotiated with each creditor. After that third step is completed, then the business workout is implemented. This part includes the restructuring of debt, meeting of all financial obligations, and focusing on various goals set by the company.

Experience in Negotiating

The business attorneys at the Law Offices of Aaronson Schantz Beiley P.A., possess a vast amount of experience in working with companies in creating and facilitating successful business workouts. It is essential for a company to work with a lawyer who understands each aspect of debt negotiation, as well as how to create a viable business workout plan.

Our lawyers understand how to work with small and medium-sized businesses and their creditors, helping to create a bridge that is beneficial to both sides. They know how to deal with creditor demands and needs, develop workouts that demonstrate to your creditors that you’re serious about paying off your debts, and recognize and deflect potential problems and challenges that may affect your enterprise in the future. In developing your business workout with our law team, you’ll be given every chance to succeed.

Looking Towards the Future

So often those who own a small or medium-sized business that runs into trouble with debt have difficulty envisioning a future, as each day is spent trying to deal with increasing debt and issues related to such. Those businesses that utilize the business workout acumen of the legal professionals at the Law Offices of Aaronson Schantz Beiley P.A., receive the benefits of experience, knowledge, and success concerning business workouts.

We will gladly take the time to review your present situation, explaining if a business workout offers a solution to your problem. Contact the Law Offices of Aaronson Schantz Beiley P.A., by calling (786) 594-3000 or by filling out our short contact form. We’ll help you find your way towards a new future.

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