Turnaround Consultancy corrects business losses, bad debt structures, cash shortfalls, and other factors that have put the business into its cash crisis. Turnaround consultancy will prioritize your cash flow management, work with your lenders, and do what is needed to get your business back on track, and help you develop a sustainable growth strategy.
How can companies benefit from Turnaround Consultancy?
How can Companies Benefit from Turnaround Consultancy?
In early stages of business distress sometimes the crisis is not noticed, but ignoring the symptoms always make the problems compound. A company may benefit from turnaround consulting services if:
1- It regularly struggles to make payroll.
2- Debt keeps increasing or debt payments are eating up its cash.
3- Vendors and contractors are asking about late bills or threatening to stop doing business with it.
4- Sales are growing but there never is enough cash available.
5- The company is suddenly unprofitable, and the accounting staff is unable to identify the reason.
6- The company is consistently profitable, but is running out of cash.
Engaging a turnaround consulting firm as early as possible may save the shareholders very high costs and possible bankrupcy, and provide the company with more options to meet its challenges.
Typical Symptoms of a
Business in Distress
Major signs of Business in Trouble:
Declining Sales
Declining EBIT
Declining PBT
Minimum reduction or increase in Cost of Sales
Declining Net Income
Net Operating Margins declining
Total Debt continued to remain same or increasing
Increasing Liabilities
Unchanged or decline in Assets
Declining Book Value
Negative or decreasing Working Capital
Negative or decreasing Retained Earnings
Negligible FCF
What services are typically offered in a Business Turnaround?
Liquidity
Management
Liquidity Management
In a turnaround situation, liquidity is the King of opportunities and is usually one of our first priorities. We assist you in:
1- Short-term cash management
2- Cash flow forecasting
3- Liquidity enhancement initiatives
4- Working capital management
5- Vendor management
Turnaround Restructuring
Turnaround Restructuring
Turnaround process are very complex processes, and involve multiple parties, require significant planning and analysis, and require a superior capabilities in coordination among numerous work streams. We assist you in:
1- Turnaround strategy development and execution
2- Turnaround coordination
3- Financial modelling
4- Negotiations with interested parties
5- Contingency planning
Operational Optimization
Operation Optimization
We have the knowledge and the experience in identifying the root causes of an enterprise’s performance decline and developing and implementing solutions to address them, improving the short and long-term projections of the business. We assist you in:
1- Strategic assessment
2- Business plan analysis and development
3- Asset redeployment
4- Cost realignment
5- Business process enhancement
6- Performance improvement initiatives
7- Metrics, measurement, and accountability
Capital
Solutions
Capital Solutions
Optimizing the balance sheet is essential for an efficient & effective turnaround process. Our strong relationships with lenders and other investors, and our experience at working through complex negotiations related to capital restructuring will assist you in:
