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Hands-on Turnaround

When a company experiences liquidity problems, there is likely to be a significant risk of breach of lending covenants; indeed a breach may have already occurred.

Commitment and control is imperative

Initially it is vital to regain control of liquidity to provide a stable base on which to operate and the journey back to profitability is a structured and methodical process that requires a considerable investment of time and expertise to ensure clarity and understanding by all involved.

Commitment from the top down is essential; without the engagement of all stakeholders, the plan for corporate turnaround may not succeed. To first stabilise, and then revive, a business in distress our specialist advisory team will engage to assess as quickly as possible the current financial position and identify the options available.

Steps to corporate renewal

Access to reliable information in respect of all business areas is crucial when considering and then securing a company’s survival. Our analysis will enable the business critical and key issues to be identified, for example where cash may be diverting unnecessarily, and allow resources to be directed to those areas fundamental for survival, and ultimately growth.

Our team are turnaround specialists with an extensive track record of successful corporate transformations. Common steps used by our team in the turnaround process include:

  • Control of Liquidity to Provide Stability
    Once an initial analysis has taken place, our aim is to quickly regain control of cash flows. Non-essential costs are identified, and comprehensive cash forecasting allows insight into all immediate and upcoming working capital requirements. 
  • Option Identification
    In assessing the best options, consideration is given to the current operating models, as well as to stakeholder requirements and expectations. The risks and rewards of each potential option are identified in order to arrive at the optimum solution.
  • Turnaround Strategy
    Formulation of a turnaround strategy involves consideration of factors such as current market conditions, levels of competition, stakeholder commitment, available credit, management capabilities and value optimisation.
  • Plan Delivery
    Using proven turnaround methodologies, our goal in executing the plan is to transform the loss-making entity to its former profitability. This includes tracking of key performance indicators to monitor results, both in the short and long-term. 

Identifying the elements of financial decline

Indications that a business may be failing are many and varied. It can occur almost unnoticeably, for example as a result of a slow erosion of profit margins over a long period of time, low but consistent cash shortfalls, or the gradual stretching of creditors.

More obvious signs of failure can include the loss of a key customer causing a steep decline in performance, or a disruptive element in the market compromising the company’s ability to compete.

Case Studies

A proven track record is the best way to demonstrate our strength and depth of expertise.

Industries

An up-to-date review of key industries, taking an in-depth look at topical and current issues within each sector.

Contact one of our BTG Advisory specialists to discuss our services in further detail

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