Corporate Turnaround

Corporate turnaround and rescue can be achieved in a number of ways, depending on the stage at which problems are recognised by those involved and whether or not there is a cash crisis.

The process usually involves a combination of one or more of the following main phases of activity:

• Stabilisation
• Financial restructuring and refinancing
• Operational turnaround

We assist companies when they are facing financial challenges, acting variously for shareholders, directors, creditors and financial institutions as appropriate. Assignments range from multi-nationals to owner-managed businesses.

• Business Stabilisation
  •  Assisting management to manage cash and generate liquidity, and helping manage stakeholder needs and demands.
• Turnaround Advice
  • Working with the business and stakeholders to identify the causes of underperformance and the steps required to achieve improvement.
• Turnaround Management
  
  • Identifying and introducing appropriate turnaround and restructuring directors and functional interim managers.
• Financial Restructuring
  • Assessing the strategic options available, analysing stakeholder interests in alternative scenarios, developing restructuring plans and facilitating negotiation.
• Finance Raising
  • Accessing a network of senior debt, asset finance, mezzanine and equity providers known to the firm.
• Divestment
  • Managing disposals or closures of underperforming business units.
• Formal Protection
  • Using the Administration and CVA procedures to obtain protection from creditors and assist in achieving legally binding compromises.

Throughout all these activities we work with executives to manage the process and give them close support during what can be an extremely stressful time outside the normal experience of most management teams.

Throughout the turnaround process we maintain an open dialogue with key stakeholders in order to build consensus, communicate confidence and restore credibility.

Smaller Companies

For smaller companies the same issues still apply, but it may be that the company cannot afford the same level of professional support because of its more limited resources. In these circumstances we can take a less involved role, merely acting as mentors to the board guiding them through a difficult period and introduce a seconded manager at salary cost.
 
You should contact our Corporate Recovery team without delay if you believe your business, or one you are invested in, is under performing. The earlier you seek help the greater are the chances of a successful turnaround and of avoiding insolvency.

Even critical situations where solvency is at issue are often capable of being saved, although this may involve more drastic action being taken, which could lead to a loss of control by existing shareholders.

THE EARLIER AN UNDERPERFORMING BUSINESS IS IDENTIFIED THE BETTER THE OUTCOME