Resolution Financial Advisors Introduces a Strategic Alternative to Bankruptcy for End-of-Life Businesses
Resolution Financial Advisors, LLC, has launched a service that helps distressed companies navigate the final stages of their business lifecycle with integrity, efficiency, and clarity. Offering alternatives to traditional bankruptcy processes, it delivers a hands-on approach to corporate wind-downs.
The boutique financial advisory has a mission to set a new standard in distressed asset resolution. Based in Los Angeles but operating nationwide, the firm serves boards of directors, executives, investors, and lenders confronting the complex realities of failing businesses. Resolution focuses on end-of-life cycle companies, guiding them through structured exits, insolvency alternatives, and orderly asset dispositions.
'Our service aligns with our mission to deliver thoughtful, strategic resolution to companies at their most vulnerable moment,' says David Johnson, co-founder and principal of Resolution Financial Advisors. 'There's often a better way to close a business than defaulting to bankruptcy. We want to help clients understand their options and choose a path that protects value, relationships, and reputations.'
Resolution's offering exemplifies a nuanced understanding of the limitations and costs of traditional bankruptcy proceedings under US federal law. For instance, Chapter 11 Bankruptcy allows companies to continue operations while restructuring their debts. 'It can offer benefits, but it can also be expensive,' says Johnson. 'It's also only ideal when there's a realistic pathway to recovery, either through an operational turnaround or the sale of assets to a buyer who prefers the bankruptcy route.'
On the other hand, Chapter 7 uses a liquidation process where the business ceases operations, and a court-appointed trustee takes over the sale of assets. 'The problem with this is that trustees are usually legal professionals without the business experience to monetize esoteric assets or operate businesses in wind-down mode,' Johnson states.
Resolution Financial Advisors recognizes these gaps. Hence, it developed a more strategic and business-savvy alternative. Its approach emphasizes three non-bankruptcy mechanisms: foreclosure assistance, receiverships, and a process known as an Assignment for the Benefit of Creditors (ABC). ABC is one of Resolution's comprehensive offerings in prioritizing value preservation, legal compliance, and stakeholder dignity.
ABC enables a company to appoint a private fiduciary as a trustee to liquidate assets and manage the wind-down on behalf of creditors and shareholders, allowing for a more customized and controlled exit. The trustee's dual role involves monetizing the company's remaining assets, including intellectual property, equipment, and receivables. It also entails executing the administrative shutdown, including filing taxes, managing employee benefits and retirement, and resolving environmental or legal obligations.
Adaptability is ABC's primary advantage. Resolution states that every case is unique. However, most of the work, such as asset sales, creditor notifications, and facility closures, can be completed within 180 days. Resolution safeguards company records and compliance matters long-term, supporting stakeholders for years after the initial engagement. This continuity and attention to detail ensure the company's closure is thorough, respectful, and legally sound.
Resolution acknowledges the depth of its role in the process. 'We're brought in after the hard decisions have been made,' says Johnson. 'It's an emotional time for founders, boards, and employees, so we come in to execute with compassion, transparency, and professionalism.' Indeed, Resolution helps ease the pain and honor the effort that has gone into building the business.
Resolution caters to various clients, from traditional retailers and industrial firms to high-growth venture-backed startups in Silicon Valley. The firm's approach remains the same regardless of size or sector. It helps stabilize the situation, preserve as much value as possible, and ensure an orderly exit that meets the legal and ethical expectations of all involved.
For those unsure whether an ABC or other alternative is appropriate, Johnson offers advice: 'Our mantra at Resolution is 'know your options.' We do a lot of upfront consultations without charge. Within a few days, we can assess your situation and present a list of viable next steps.'
Resolution's educational approach is crucial as more businesses face tightening capital markets, lender fatigue, and unsustainable burn rates. The company is active on LinkedIn, where it regularly publishes content that demystifies the end-of-life corporate stage.
Media Contact
Name: David Johnson
Email: [email protected]
There is no offer to sell, no solicitation of an offer to buy, and no recommendation of any security or any other product or service in this article. Moreover, nothing contained in this should be construed as a recommendation to buy, sell, or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security, or related transaction is appropriate for you based on your investment objectives, financial circumstances, and risk tolerance. Consult your business advisor, attorney, or tax advisor regarding your specific business, legal, or tax situation.
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