When performance is slipping, lender relationships are tightening, or internal explanations aren’t adding up, REAG provides an independent analytical perspective to help lenders, credit teams, and business owners understand what is actually happening — and what realistic options exist.
We are not brokers in these situations.
We are an analytical partner.
This service is designed for two distinct audiences facing different versions of the same problem.
You are managing a credit that is showing signs of stress. Performance is tightening. Covenants are approaching. The borrower is telling you things are fine. You need an independent view — not a sales pitch, not a management presentation — to understand what is actually happening and what your realistic options are.
REAG provides that perspective. We evaluate the business independently, identify the issues management may not be surfacing, and help your team understand the strategic options available before decisions become forced. Whether you are managing a covenant default, evaluating forbearance terms, or simply uncertain whether a borrower’s recovery projections are credible, REAG delivers the independent credit stress analysis your team needs to move with confidence.
Your business is under pressure — from debt service, cash flow constraints, EBITDA underperformance, or a capital structure that no longer fits the business. You need a clear-eyed perspective on where things stand, what options exist, and how to stabilize the situation before it deteriorates further.
REAG helps owners in these situations understand their options, evaluate paths forward, and prepare for whatever comes next — whether that is a refinancing, a recapitalization, a sale, or a structured resolution.
In stressed situations, lenders and credit teams are frequently presented with management’s view of why performance has slipped and why things are expected to improve. That perspective is often genuine — but it is rarely complete.
Management teams are not always positioned to objectively assess their own business. They may be too close to the situation, too optimistic about recovery, or unaware of the structural issues that are driving underperformance.
In workout and special assets situations, relying solely on borrower-provided information introduces risk that an independent assessment can quickly eliminate.
REAG provides the independent perspective that cuts through that dynamic. We assess the business on its own merits — not through the lens of what management wants the outcome to be.
Lenders and business owners typically engage REAG when one or more of the following conditions are present:
A borrower has tripped a financial covenant or is within range of doing so, and the lender needs an independent view of the business before deciding how to respond.
Revenue or EBITDA has declined and management's explanation does not fully account for the gap. An independent assessment clarifies whether the issue is cyclical, structural, or operational.
A lender is considering whether to extend forbearance or amend loan terms and needs an objective analysis of whether the business can actually recover under a modified structure.
Cash reserves are declining and the 13-week cash flow outlook is uncertain. The lender or owner needs a clear view of runway and the realistic options available before liquidity becomes critical.
A credit has been moved to a workout group or special assets team and requires rapid independent assessment before the lender determines next steps.
A business owner recognizes that the current capital structure is unsustainable and wants an objective evaluation of options before lender pressure forces a decision.
Our flagship service for lenders, workout groups, and special situations teams. A fast-turn engagement — typically two to three weeks — that answers the questions your team needs answered before making decisions.
Deliverables include a cash flow and liquidity view, debt capacity and break-even analysis, and a clear evaluation of the strategic options available — refinancing, amend and extend, sale, majority recapitalization, or structured wind-down.
This is not a lengthy consulting engagement. It is a focused, decision-support tool designed to help lenders and special assets groups move quickly and with confidence.
For lenders managing credits before formal default — when covenants are tightening and EBITDA underperformance is appearing but the situation has not yet become acute. This analysis answers: what happens if nothing changes? It includes a near-term 13-week cash flow view, identification of the key risk factors, and a realistic timeline to when issues become critical. The goal is to give workout groups and portfolio management teams the information needed to get ahead of a stressed credit rather than react to it.
When a business in a stressed situation needs to be sold, recapitalized, or refinanced within a compressed timeframe, preparation matters more — not less. Buyers and capital providers in distressed situations discount heavily for uncertainty and disorder. REAG helps compress that timeline by preparing the business for a process: financial normalization, data room organization, KPI and reporting cleanup, and lender narrative development. This work bridges the gap between a stressed credit and a credible process — and it often runs concurrently with lender conversations and forbearance negotiations.
Turnaround consultants typically embed in the business to drive operational change. That is valuable work — but it is not what we do.
REAG’s role is analytical and strategic. We assess the situation, evaluate the options, and provide an independent perspective that supports decision-making by lenders and owners. We are not running the business. We are helping the people responsible for the outcome understand what the outcome is likely to be — and what can be done about it.
In many distressed situations, REAG works alongside turnaround consultants — they address the operational side, we address the strategic and transactional side. Those roles are complementary, not redundant.
Our analysis is not influenced by management's incentives or the borrower's preferred narrative. We assess the situation as it is — not as the borrower needs it to appear.
Our situation assessments are designed for fast turnaround. Lenders and workout groups in stressed situations do not have the luxury of a six-month consulting engagement.
We do not just describe the problem. We evaluate the realistic options and help your team understand which path makes the most sense given the business's actual condition.
If a sale or majority recapitalization becomes the right path forward, REAG has the lower middle market experience and buyer relationships to support that process. The analytical work and the transactional work stay connected.
We work with businesses in the $2M–$25M EBITDA range. This is the segment where specialized knowledge of deal dynamics, buyer behavior, and capital structure matters most — and where generic advisory support is least useful.
Distressed & Turnaround Advisory is one of three specialized advisory services REAG offers beyond traditional transaction work:
When a distressed situation leads to a transaction, REAG’s Sell-Side and Buy-Side advisory capabilities are available to execute the outcome. The transition from assessment to transaction stays within one advisory relationship — eliminating the disruption and delay of starting over with a new advisor.
Our primary audience for this service is lenders — workout groups, special assets teams, special situations lenders, private credit funds, and ABL lenders — who need an independent view of a stressed credit. We also work directly with business owners who recognize their situation is deteriorating and want objective guidance on their options before decisions become forced.
Our Independent Situation Assessment is designed for a two-to-three week turnaround. We understand that speed matters in stressed credit situations and structure our work accordingly.
No. In distressed advisory engagements, REAG acts as an independent analytical partner — not as a broker or intermediary. As M&A advisors, our role is to assess the situation, evaluate options, and support decision-making. If a transaction ultimately results from that process, we can discuss how REAG might support it at that stage.
We work across the stress spectrum — from early warning situations and covenant tightening through formal default and forbearance. The earlier we are engaged, the more options typically exist. But we can provide useful independent analysis and strategic clarity even in situations that are already acute.
Restructuring attorneys manage the legal process. REAG provides the independent business and strategic assessment that informs what that legal process should accomplish — including whether a sale, recapitalization, or refinancing is the right outcome to pursue. These roles are different and work best in parallel.
Yes. Many distressed advisory engagements identify a sale, majority recapitalization, or refinancing as the best path forward. When that happens, REAG is positioned to support the transaction directly — the analytical work and the transactional work stay connected rather than starting over with a new advisor.
Fees are structured based on the scope and speed of the engagement. Independent Situation Assessments are typically fixed-fee. Early Warning Analysis and ongoing advisory work can be structured on a retainer or project basis. We are happy to discuss structure and fees directly based on your situation.
Schedule a discovery call with our senior advisory team so we can understand your situation.
833-333-REAG (7324) | info@reag.com | www.reag.com
See what our clients say about us
Manufacturing – Strategic Legacy Transition
“[REAG] absolutely, without debate, worked in our best interest, solved problems (most of the time before they came about) and did whatever was needed to get us the best possible deal both short and long term.” — Fuzion Technologies, Inc.
Fuzion Technologies, Inc.
“[REAG] absolutely, without debate, worked in our best interest, solved problems (most of the time before they came about) and did whatever was needed to get us the best possible deal both short and long term.” — Fuzion Technologies, Inc.
A Christmas Story House & Museum
“When I went to sell my business, I was on the fence about hiring a broker. I thought I could probably handle it myself. I was a capable businessman. How hard could it really be? In the end I relented and interviewed multiple brokers and REAG stood out from the crowd. I quickly learned I was wrong about handling the transaction myself. The complexity of the transaction from writing a CIM, to financials, to marketing and more would have been too much for me to handle on my own. I am grateful to REAG for gently encouraging me to use their services for my own sake. Without them, I would have failed miserably. The team was amazing and took care of everything I needed.”
A Christmas Story House & Museum
A Christmas Story House & Museum
“When I went to sell my business, I was on the fence about hiring a broker. I thought I could probably handle it myself. I was a capable businessman. How hard could it really be? In the end I relented and interviewed multiple brokers and REAG stood out from the crowd. I quickly learned I was wrong about handling the transaction myself. The complexity of the transaction from writing a CIM, to financials, to marketing and more would have been too much for me to handle on my own. I am grateful to REAG for gently encouraging me to use their services for my own sake. Without them, I would have failed miserably. The team was amazing and took care of everything I needed.”
Manufacturing – Successful Legacy Transition
“Every part of the 8-month process to transition my business was purposely motivated, diligent, detail oriented, and considerate of all of my business skills and requirements.” — Kadee Industries
Kadee Industries
“Every part of the 8-month process to transition my business was purposely motivated, diligent, detail oriented, and considerate of all of my business skills and requirements.” — Kadee Industries
Schedule a discovery call with our senior advisory team so we can understand your needs.
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