What’s My Guarantee That A Workout Plan Is Going To Work Out?

A workout plan is an art form. There are no direct paths to victory.

Our clients typically have many side issues. The workout is heavily affected by who the guarantors are and whether or not the borrower wants the business assets to be preserved. Each lender has its own variations of the theme of how they approach a workout. Every business has its own issues and, as a result, no two workouts are ever the same. Some go very smoothly while others are like crawling over broken glass.

The only reality I can guarantee is that every workout has a satisfactory conclusion and it is most often exceptional. Less often, it is only terrific. We never outright fail because there is nothing to fail at if our strategy is implemented carefully and with precision, which of course it always is. Timelines can be and usually are adjusted, results may be slightly better or worse than projected but in the end, we always succeed in delivering our results as predicted.

Two large issues exist that can be challenging at times. One is the valuation of the business assets, an important matter as it determines the price for the sale of assets. The second issue, which can be challenging, is the net liquidation value of the guarantors which will determine the value of the Offer in Compromise for the personal guaranty. These can fluctuate although we spend much time and effort in supporting our claims as to what these values should be.

An important note, however, is the bottom line conclusion – that every workout we perform results in major reduction of debt and, if appropriate, a freeing of the assets of the business.

Remember, the borrower truly owes the money to the lender or creditor, there is no defense. Thus, we are walking a very thin line as we have no defense and no offense. Under such circumstances we must be able to bob and weave and thread our way through the minefield with much broken field running. We must be creative, focused and driven. A workout always takes on its own life and may appear different than projected, yet we always win the day. Entering into a workout requires bravery, tenacity, patience, and commitment. In the end it is very worthwhile; the results are always worth the effort.

Any workout plan we conceive usually follows the general theme but always is subject to changes and adjustments as the plan unfolds and the issues pop out. It is an art form, yet it has basic structure that we always follow, one must have patience and flexibility and trust in our efforts and proven success. There are no guarantees but our track record is phenomenal.

As Manny said when the Red Sox were down 3-0 in games to the New York Yankees in the American League playoffs before winning the World Series in 2004,”Keep the faith, baby!”