{"id":560686,"date":"2020-10-09T03:04:26","date_gmt":"2020-10-09T07:04:26","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbgreenbay\/buying-a-distressed-business\/"},"modified":"2022-01-31T12:41:52","modified_gmt":"2022-01-31T17:41:52","slug":"buying-a-distressed-business","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/buying-a-distressed-business\/","title":{"rendered":"Buying a Distressed Business\u00a0"},"content":{"rendered":"
\"\"<\/p>\n

It is safe to state that Howard Brownstein, President of The Brownstein Corporation, is a true expert in providing turnaround management and advisory services to companies, as well as their stakeholders.\u00a0 Brownstein serves as an independent corporate board member for both publicly held as well as privately-owned companies and nonprofits.\u00a0 During his career, he has been named a Board Leadership Fellow by the National Association of Corporate Directors (NACD) and served as Board Chair and President of its Philadelphia Chapter.\u00a0 He also serves as Vice Chair of the ABA Corporate Governance Committee and has been named a Fellow of the American Bar Foundation.\u00a0 He has been a speaker at many of the world\u2019s top universities including Harvard Business School and Wharton.\u00a0 Brownstein received his J.D. and M.B.A. degrees from the University of Pennsylvania.<\/span><\/p>\n

Mr. Brownstein is considered to be one of the world\u2019s top experts in distressed businesses.\u00a0 He believes it is essential to remember that not all distressed businesses are, in fact, the same.\u00a0 There is simply no way to know how bad things are for a given distressed business until one begins to \u201clook under the hood,\u201d and get a full view of what problems may lurk underneath.\u00a0<\/span><\/p>\n

Brownstein firmly believes that distressed businesses can represent a real and often overlooked opportunity for buyers.\u00a0 The recent economic downturn brought about by COVID-19 means that there will likely be a great deal more distressed businesses on the market in the coming months or even in the next couple of years.\u00a0<\/span><\/p>\n

Why is a Given Business Distressed?\u00a0<\/b><\/p>\n

Before you consider purchasing a distressed business, you absolutely must understand the core reasons for the distresses.\u00a0 Without a proper and detailed understanding of why the business entered a state of distress in the first place, it is impossible to clearly articulate why the business will potentially be valuable in the future.\u00a0 It is essential to be able to convey \u201cwhat went wrong\u201d and how the problems can be fixed.<\/span><\/p>\n

Brownstein points out that while there are many reasons for a business to enter distress, two symptoms top the list.\u00a0 The first is cash flow issues and the second issue relates to management.\u00a0 Often it turns out that the management was simply not rigorous enough.\u00a0 He also notes that companies will tend to gravitate to external issues as a way to explain away their failure.<\/span><\/p>\n

Of course, no two distressed businesses are failing from 100% identical causes.\u00a0 Brownstein suggests a series of questions that you need to ask when you begin exploring a distressed business.<\/span><\/p>\n

    \n
  1. What is the business\u2019 potential value?<\/span><\/li>\n
  2. Is there something of value under the problems?<\/span><\/li>\n
  3. Under better or different circumstances, could the business be viable?<\/span><\/li>\n<\/ol>\n

    These are all questions that your business broker or M&A advisor can assist with.\u00a0 It\u2019s important to gain a clear understanding of the business\u2019 past, present and future.\u00a0<\/span><\/p>\n

    Copyright: Business Brokerage Press, Inc.<\/a><\/p>\n

    Haritonoff\/BigStock.com<\/a><\/p>\n

    The post Buying a Distressed Business\u00a0<\/a> appeared first on Deal Studio – Automate, accelerate and elevate your deal making<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    It is safe to state that Howard Brownstein, President of The Brownstein Corporation, is a true expert in providing turnaround management and advisory services to companies, as well as their stakeholders.\u00a0 Brownstein serves as an independent corporate board member for both publicly held as well as privately-owned companies and nonprofits.\u00a0 During his career, he has […]<\/p>\n","protected":false},"author":2,"featured_media":560688,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[],"class_list":["post-560686","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buyer-articles"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560686","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/comments?post=560686"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560686\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media\/560688"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media?parent=560686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/categories?post=560686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/tags?post=560686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}