Insights

Every year many companies approach insolvency and some enter it.  Many others end up completely bankrupt.  In Canada bankruptcy trustees and the courts do a decent job of taking companies through an orderly process even if the entire process is memorably uncomfortable.  

Edgewater was called in to help a company that was -- for lack of a better word, teetering on the edge.  Working with the owners, we identified about 20% of the cost base that could be cut.  This included making tough decisions on who to terminate, suppliers to part ways with and every action that could reduce the outflow of cash, including clamping down on late AR.  The net effect was that the company survived for about 9 months before going into receivership.  But this was success because during that time the outstanding loans were paid down by 50%, the business was cut in half in terms of costs, and various strategic decisions could be taken.  Which meant that a buyer emerged at the 11th hour to take over the company.  It continues in business to this day.