Business Turnaround

Our mission is to achieve a sustainable turnaround and recovery; a recovery which will endure for the longer term.

We have extensive experience, bringing strategies to bear that have proved effective elsewhere, as well as highlighting other areas that may not have been considered by the directors. Costs of restructuring are easily recouped by cost savings.

We see the process through the turnaround of a company. Although we blend senior associates and directors during data collection and analysis, our service is weighted towards the directors actively leading with a clear strong presence on site.

A successful turnaround will address the fundamental problems of the business targeting their underlying causes, rather than the manifested symptoms. Throughout the turnaround process stakeholder management plays an important part.

Our approach to turnaround situations comprises five key stages:

Crisis management: Efforts to preserve cash provide a window of opportunity during which the turnaround plan can be developed and the financial restructuring of the company agreed. Throughout this step the process of forecasting short-term cash positions, communicating these to stakeholders and subsequently delivering to these forecasts is an essential element in rebuilding stakeholder confidence.

Stabilisation: When cash preservation is supported by cash generation techniques such as working capital reductions and a cost improvement programme. In this phase we can move to forecasting medium-term cash positions, communicating these to stakeholders and subsequently delivering to these forecasts further rebuilding stakeholder confidence.

Robust planning: This stage seeks to demonstrate a sense of direction and purpose, and, to articulate this to stakeholders. This robust and viable strategy would typically cover re-defining the business, divestment, product and market refocusing. From the strategy a turnaround plan is developed along with a realistic assessment of risks and thorough contingency planning.

Financial restructuring: If operating cash flows do not cover the financing outflows required by the company’s debt and equity obligations, the only option is a financial restructure. The objectives of a financial restructure are to align the capital structure with the quantum of projected operating cash flows and to service the implementation of the turnaround plan. Financial stakeholder mediation plays an important part in the successful conclusion of this stage.

Operational restructuring: This will encompass a re-clarification of management roles, the alignment of performance goals and objectives to the delivery of the turnaround plan, a cost and benefit examination of business processes, an implementation plan and project management of the key deliverables. We are mindful to manage our exit from the business in a controlled and collaborative manner.