We help distressed businesses. In a matter of weeks your company could be on its way towards stability and greater profitabilitY
WHAT IS A TURNAROUND?
Turnaround is a favorable reversal of a crisis situation through financial restructuring
A series of steps
Turnaround is a formulation of a problem-solving strategy and implementation of the restructuring plan, in which we take a lead role
Turnaround is an chance to transform a distressed business into a healthier organization with a stronger brand
Turnaround is a process of stepping out of corporate comfort zone, which prepares owners and employees to detect, prevent, or cope with future crises more effectively
WHO are OUR typical turnaround clients?
Our clients are companies in financial distress in any industry
Recurrence of financial challenges and circumstances allows the same team of consultants to successfully restructure a company in any sector, while using the same set of turnaround tools
Common symptoms of approaching financial crisis are:
- Stretched trade payables or inability to fund payroll on time
- Decreasing sales with no corresponding reduction in costs
- Approaching bank debt default
- Operating losses for an extended period of time
- Lack of liquidity, inability to fund working capital
- Excessive expansion or explosive diversification
- Narrowing customer base
- Operating without a robust financial plan
How does our work impact companies?
Positive financial impact
- Long-lasting increase in profitability
- Deleveraging of the balance sheet to achieve a healthier debt structure
- Higher cash flows that can be used to service debt and to drive business growth
- Stronger market position, diversification or expansion of revenues, and a more sustainable competitive advantage
- Elimination of unprofitable segments or products – the result can be a smaller but healthier business
New sources of liquidity
- (Re) financing
- Increase in value of a business
- Search for strategic & financial buyers if a determination is made that the business is not viable on a stand-alone basis
Restored or strengthened relationships with key stakeholders (banks, suppliers, customers, government agencies) resulting from their support of the turnaround plan
New management tools
- Development of reliable accounting practices and procedures
- Creation of powerful multi-scenario financial forecasting models
- Design and implementation of weekly flash reports with key operational and financial performance indicators
WHAT INFLUENCES OUTCOMES OF TURNAROUND ENGAGEMENTS?
Results may vary, depending on a number of circumstances:
- Business owners' motivation level and willingness to stay the course
- Initial state of affairs
- Market conditions
HOW TO MAKE TURNAROUND PROCESS MORE EFFECTIVE?
Acknowledge The Problem
The owners and management must acknowledge that a life-threatening situation exists or is rapidly approaching and be ready to take active, decisive and (possibly) unpopular measures to respond to it
Endorse Tailored Approach
Each turnaround plan is custom-designed to respond to each unique set of circumstances. There is no cookie-cutter approach although certain practices, methods, and building blocks will repeat from one engagement to another
Owners of distressed businesses should prepare for a marathon, not for a sprint – depending on the severity of the situation and the chosen strategy, the process of achieving stated goals ad objectives may vary in length
WHAT ARE THE STAGES OF A TYPICAL TURNAROUND?
A typical engagement lasts for several months – it is intense and productive. While the actual sequence of turnaround steps may vary depending on circumstances, the following set of phases is usually a part of virtually any turnaround engagement:
- Neutralize immediate threats to the business (stop the “bleeding”)
- Diagnose the underlying problem
- Create a restructuring plan
- Implement the plan
An implementation phase of may include refinancing, search for strategic partners, and a complete overhaul of accounting systems
Who is on the turnaround project team?
We lead transformation initiatives while working closely with our clients' staff and stakeholders to execute the restructuring plan. Having worked with companies in a diverse array of industries, we are generalists at the core.
Depending upon the size of the engagement and complexity of tasks, we have an option to engage recognized industry professionals with relevant sector experience and expertise. In many cases, however, additional consultants are not needed because trained client’s employees become active agents for change
Most team members and associates have international exposure, western education, business mentality and ethics