Business Workouts Can Help Companies Recover
The attorneys at the Aaronson Schantz Beiley P.A., in Miami, Florida, often work with businesses that are dealing with debt due to outside circumstances, such as weather events, personal health matters, business cycles, and presently the cessation of business activity due to the coronavirus. Aaronson Schantz Beiley P.A. has developed a reputation in the legal and business community of South Florida and beyond, for negotiating settlements and workouts that avoid the prospect of extended litigation and consequent substantial legal expenses.
The secret is not so secret. The lawyers at Aaronson Schantz Beiley P.A. are well known in the legal community to provide their clients with a complete array of services. The legal community is well aware that a reasonable settlement proposal ought to be taken seriously, because otherwise there will be appropriate litigation or proceedings filed to attain a similar result. A settlement or workout may be the most beneficial result for not only our law firm’s clients, but for the clients’ creditors.The firm motto is truly, “Why do surgery when you can treat the problem with a pill?” The one thing that may be relied upon when using our legal services is that the client’s needs are always paramount.
The Basics
Business workouts involve companies implementing a business plan that incorporates payments to creditors over a period of time, and often at a discount. The aim is to allow the client to remain in business, to settle existing debt and to incur new debt in the ordinary course. Often, the company may obtain a new loan or a new investor subject to the compromise and settlement of existing debt.
Creditors will often agree to a business workout if they perceive that it will permit them to receive some payment, albeit something less than full payment, and the ability to continue to do business with the client going forward. The analysis often is between a small payment is a liquidation scenario vs. a greater payment over time, and the ability to do business going forward. Often logic prevails.
The Process
Often, the process involved in business workouts involves a negotiation between counsel. Aaronson Schantz Beiley P.A. is generally happy to negotiate with sophisticated counsel because they are more aware of how the situation may evolve in litigation or in a bankruptcy setting.
There Are Various Parts To This Process:
- Analysis of the company’s debt
- Analysis of the company’s financial situation
- The client’s understanding of alternatives
- The client’s determination to proceed
- The client’s full understanding of all costs involved
- The creditors’ understanding of the alternatives
- A meeting of the minds as to the future treatment of the creditor
- Implementation of the workout
Our legal team can assist you in each of these steps.
Experience In Negotiating
The business attorneys at 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 client to understand all of their legal alternatives, and the costs involved in each. Our attorneys know how to negotiate with creditors, how to recognize and deflect potential problems and how best to deal with them. We believe that a settlement/workout that is not feasible is not an appropriate resolution. The process needs to result in a new and successful business.
Looking Toward 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 related issues. Those businesses that utilize the business workout acumen of the legal professionals at the Aaronson Schantz Beiley P.A. receive the benefits of experience, knowledge and much success over the years concerning business workouts.
We will gladly take the time to review your present situation. Contact us by calling 786-600-6940 or by filling out our short contact form. Do not give up until you understand your rights.