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Distressed Assets & Bankruptcy

Chapter 11 Workout Consulting (Sweat-Equity Path)

Help a distressed business restructure through Ch11 in exchange for equity — sweat-equity turnaround play.

Overview

Turnaround consultants (or founders with restructuring skill) can negotiate with a distressed business owner to: (1) architect the Ch 11 or out-of-court workout, (2) negotiate with creditors, (3) find DIP financing / plan sponsor, (4) run operations during restructuring — in exchange for 20–50% post-restructuring equity. Owner often retains 10–30% + management role. No cash out-of-pocket; requires 6–18 months of full-time work. Certifications like CTP (Certified Turnaround Professional) help.

Best fit
Operators / consultants with turnaround skillFormer CFOs / restructuring attorneysIndustry specialists
Estimated impact
20–50% equity in $2M–$50M business for time investment

Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.

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