Turnarounds | Restructuring | Business Incubation

Turning around underperforming companies

To many, a company in need of turnaround is one faced with financial burdens, being unable to meet its payroll or struggling to settle its debts. However, the situation can take other forms as well. A founding director may die unexpectedly, leaving a leadership void. Or a team of senior executives may suddenly up and leave to form a competing entity.

Other turnaround situations may arise from companies growing faster than they are able to manage or finance, or from losing a major customer or market.

Turnaround situations require a stable, experienced hand at the tiller. These situations often call for decisive action in the short term in order to secure the longer term survival and success of the company. Such actions may include:

Installing an individual or small executive team of high calibre on an interim basis to stabilise the leadership and management situation;

Ensuring a workable cash-flow scenario;

Working out short term survival arrangements with all stakeholders, including section 311 schemes of arrangement where appropriate;

Formulating and implementing a strategy to put the company back on the road towards improved profitability, growth and shareholder value.