Business Turnaround: the sustainable revival of a company that has been underperforming
A successful turnaround requires rapid action to stabilise the business, proactive management of key stakeholders to secure or maintain support, a robust strategic plan, access to fresh capital and relentless execution, all of which we are experts at delivering.Smart Accounting provide business turnarond services to +$3M business in Melbourne.
We are highly capable and extremely experienced in developing practical improvements, specifically driving effectiveness and efficiency, ensuring your ongoing profitability becomes stable and plentiful.
When a company is threatened with insolvency due to poor cash flow, the key decision-makers, in their distressed state, have mindsets that vary from denial and blame, to “head in the sand” optimism that the market will pick up and the problem will go away.
At Smart Accounting, we help our clients understand the importance of establishing strong business goals along with solid staffing structures and clear operational processes to ensure longevity and success. A clear vision upfront compounded with a powerful business plan is one of the most important pillars to having a successful business.
The purpose of turnaround management is to:
- Understand if the business is able to be rescued and if so what is required to restore viability
- Develop and implement a turnaround strategy and step by step plan
- Rebuild lender support (if required)
- Restore business 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.
What we do…
Re-injecting life into an underperforming business resulting in strong profits that are predictable and sustainable
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 plans
- Cash 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
Expected Outcomes of a Successful 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 business value
Business Consulting Options:
Below is an overview of the kinds of work we do. This selection is by no means exhaustive, and our team of friendly staff are more than happy to discuss your specific needs and tailor an approriate solution – no matter if the solution is large or small.