Sometimes a firm can be struggling to thrive but at least part of the business model is sound. We carry out an in-depth analysis of the company’s competitive advantage and price/cost structure and so to re-position the firm in a more favourable place Cash flow is the life blood of any business and this is all the more relevant for an underperforming company. Often the management team may need to be reconfigured and strengthened to bring in new skills or adjust the blend of skills available to the firm.
Turnarounds arise in many different forms. Sometimes the diagnosis can be straightforward and a strategy implemented to sell or close a loss-making part of the business or take action to make it profitable. Sometimes the issues can be more serious and deep seated especially if the business may run out of cash.
We always ensure our turnaround clients have access to licensed insolvency specialists so directors are given independent advice to ensure they are protected against the risk of insolvent trading and personal liability and disqualification. As ever, the sooner that advice is sought the more options are likely to be available which may well be less painful to implement the earlier action is taken. Sadly, many directors and business owners can be in understandable denial about the issues but earlier intervention and restructuring to many a business in distress might well have saved them from closure.
We are linked to R3, The Association of Business Recovery Professionals which is active in raising awareness with individuals and businesses on the key benefits in obtaining specialist advice for underperforming and financially distressed businesses and individuals. R3 produce several guides designed to inform the general public about their financial options and they provide publications suitable for professionals within the sector.
R3 provides information and guidance on policy and insolvency issues and produce technical information for all those working within the sector. R3 works with government, key policy makers, and opinion formers.
This link provides excellent guidance on why choosing the right specialist help is so important to directors and business owners: