The same challenge applies to others in key positions in marketing, sales, operations and manufacturing. A company can overrun its ability to manage. Some companies develop an adversary relationship with their financial lending institution. Fearing that their loan or loans may be in jeopardy, they attempt to hide financial information from the bank. Phone calls are not returned.
Reports stop being filed.
Since money is the lifeblood of almost any business, this kind of lender relationship only leads to more trouble. Their egos tell them they can still pull the company out of its nose-dive. For some, denial sets in and they refuse to believe such a downturn is really happening to their company. To stop the bleeding and set a new course for the business, a change in leadership is required. The turnaround specialist is usually selected and hired by the board of directors, but others such as bankers and corporate attorneys may also be involved.