Business Turnaround Advisory
We have developed our Business Turnaround Standard based on a process built up over years of experience dealing with distressed companies. The process also works effectively with companies striving to improve their operational and financial position.
Our Business Turnaround Standard is based on
- Review & Stablisation
- Operational & Strategic Capability Realignment
- Financial Restructuring
- Implementation
- Stakeholder Legacy
Review & Stabilisation
The first stage is to take tight control of cash, to keep money flowing and avoid unnecessary expenditure. We implement a detailed rolling cashflow forecast which shows when the pressure points arise. This provides key stakeholders with the transparency and visibility they require allowing time to develop the turnaround plan. Basic financial information is usually poor and financial controls are weak. Key management decisions are often founded upon inaccurate, out of date or incomplete information.
The key to a successful turnaround is the establishment of a solid financial baseline from which to measure and communicate progress. Building upon the cash forecast, we conduct a thorough financial, competitive and operational analysis to understand the root causes of decline and establish a single version of the truth. We introduce rigorous financial controls, to maintain the key business drivers whilst the business returns to a more stable position. We develop a “dashboard” to monitor these key drivers on a timely basis to ensure the turnaround remains on track.
Operational & Strategic capability realignment
The organisation may have been successful in the past but has failed to respond to new competitive pressures. Building on a detailed analysis of the causes of decline we then develop the turnaround plan. This is a succinct document explaining the causes of decline, what tactical, strategic and organisational actions are needed to bring about change, the funding requirements and how progress will be tracked. As you look to rebuild and grow your business strategy, operations and, sales and marketing will play an increasingly important role. We have developed an extremely successful methodology for rapidly benchmarking an organisation’s operational approach against industry best practice for their life stage. Working through this diagnostic process we help clients to optimize their business process.
Financial Restructuring
As a result of investment or growth strategies some businesses can become over-indebted. Even with a successful operational turnaround, companies will critically require financial restructuring. We prepare detailed financial forecasts to establish the funding requirement during the turnaround and the level of debt the business can realistically support . We manage the banking strategy and renegotiation of finances to ensure a workable outcome is achieved. With appropriate financial structures and incentives in place, the organisation is afforded a firm foundation to rebuild its business.
Implementation
Once businesses are on the path to long term sustainable growth, some clients continue to engage Turnaround Group to carry out intermittent Turnaround health checks and appraisals to make sure that the lessons learnt in a crisis have not been forgotten.
Stakeholder Legacy
Our purpose is to build an enduring legacy for all stakeholders in the business. Many clients opt for a staged withdrawal of our Turnaround Services. For example, the roles of the Turnaround may be complete with the handover to the senior management team, The Turnaround Director takes responsibility for and drives through the difficult decisions.
