Turnaround Management – An Overview

The purpose of turnaround management is to:

Determine if a business is still viable or what is required to restore viability
Develop and implement a turnaround management plan
Rebuild key stakeholder support
Restore shareholder value

What's Involved in Turnaround Management

A review of operations and financial performance (ie. P&L, BS, Cash Flow, finance systems and controls etc.)
Development of revenue enhancement &/or cost reduction plansCash flow and working capital management (debtors, creditors, stock)
Critical assessment of management team, business plan and forecasts
Assessment of appropriate debt structure and bank security issues
Assistance and advice on the sale of a business or division etc.Assessment of other corporate finance alternatives such as buying a competitor etc.
Development, implementation and monitoring of the turnaround strategy
Project managing the turnaround strategy
Possible Outcomes of a Turnaround Management Process

The following is a summary of the typical outcomes of a turnaround management process:
Streamlined, viable business
Bank agrees to support the restructuring plan
Sale of the business or of non core assets
Merger or acquisition of a competitor
Debt facilities are refinanced with another bank
Adequate controls are put in place to manage the business
Restored shareholder value

In summary, if steps are taken early to address the causes of underperformance then appropriate measures can be put in place to develop and implement a successful turnaround management strategy.

If you would like to discuss the key elements of a succession plan in more detail please feel free to contact us.


Regards,

Michael Fingland

Managing Director


M +61 407 226 968
T +61 7 3229 5750
F +61 7 3229 5765
Level 5, 247 Adelaide StreetBrisbane QLD 4000


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