Over the course of this Financial Recovery series, we have told you there are 12 steps to recovery (as defined by the Government Finance Officers Association (GFOA)) – but, in point of fact, there is a 13th Step. This step is about what happens when all prior 12 steps just aren’t enough.
Unfortunately, the financial recovery process does not always produce the desired positive result. Sometimes you do everything in your power to make it work, you do all the steps right, carry out all the duties you have to the tee – and still, things just don’t turn out the way they are supposed to.
So, should conditions within the economic world slip deeper into financial distress, certain more dramatic options may need to be contemplated.
Such options may include:
• Intervention of new investors through ownership selling, and
• A less common and generally not recommended (in fact one that one would want to avoid) option: bankruptcy
Recovery from financial distress is a journey that, as discussed over the length of this blog series, requires leadership, skilled thinking, motivated employees and difficult decision-making. Sometimes the hardest decision may be to call it in.
But whatever you do, make sure that you make an informed decision at all times,
All the best,