Best Business Solutions for Sick Enterprises
Present time many government and private sector companies are become sick due to debt burden, technology changes and management issues but problem solution is possible in my ways -
1. If any company became NPA (Non performing asset) to banks so first good option to meet with bank officers and give application for OTS (one time settlement ). OTS amount may be 25% to 50% of the loan amount.
2. Search good potential investors to sell stack of company.
3. Search good management team to handle these issues.
4. Make a joint venture with best partner of their field as good performer companies or sound liquidity person.
5. Your target should be wipe out previous bank loans challenges.
Structure and working -
Make a minority stake holding company with market sectoral leader and financial sound persons because you have experience of the business and other side financial sound people invest money equity or debt form for long term third person who is market leader sure his management is very well then others.
Thus run company and try for other investors for new business growth. This whole investment will be 80% by fresh equity route and 20% by selling promoter holding thus earning money by selling 10% equity of the company distributed to all three party who sold his stack. Use this amount for sick enterprise revival. Thus after one or two year search new investor and sell 10% more stack thus you gain high value of your shares then first stack sell. This new selling whole amount is two parts where first is fresh equity and second is existing promoter stack sell. Thus in 5 to 7 years you can earn good & enough amount to bring on track your old company. Full details we will discuss in next blogs.

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