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UCP offers specialist turnaround management
services. The earliest
intervention increases the survival potential for companies in distress, as
well as maximising the returns to stakeholders.
There are 3 stages of turnaround management.
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Stage 1 – Assess Viability |
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Stage 2 – Stabilise and Develop Strategy |
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Stage 3 – Implementation and Monitoring |
Stage 1 – Assess Viability
This consists of a high level and detailed
investigation of the business and its situation, and can take 2-4 weeks.
The investigation acquires a wide range of information including:
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current and historical financials |
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review of
management capability |
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cause of situation |
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identification of potential solutions |
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assessment of business issues |
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assessment of ongoing business viability |
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review of stakeholder issues |
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completing a SWOT analysis to expose
options. |
Stage 2 – Stabilise and Develop Strategy
Stage 2 focuses on stabilising the business
and planning the recovery strategy. The timeframe can vary widely depending
on the business situation and complexity and can take from 4 weeks to 3
months. The turnaround strategy consists of the following, and may occur
concurrently and in any order:
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Crisis
stabilisation – taking control, cash management, short term financing,
first step cost reduction. |
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New or
improved leadership – due to inadequate skills, instability in management,
need for fresh ideas, or to refresh a tired team. |
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Stakeholder focus – advising and engaging
stakeholders dependent on the outcome and includes financiers, creditors,
employees, customers, and others. |
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Strategic focus – redefining the core
business, restructuring, M&A, divestment. |
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Organisational change – engaging key
staff, improving communication, improving morale. |
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Process improvements – operational
improvements that provides immediate benefits, and focus on issues that
may be key risks. |
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review of stakeholder issues |
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Financial restructuring – implementing
tighter control and monitoring of cash (implementing a rolling 13 week
cash flow forecast), equity injection, asset reduction or
selling under-utilized assets to generate cash or use as security for
short term funding. |
Stage 3 – Implementation and Monitoring
Stage 3 focuses on
detailed implementation and monitoring. This may
include setting up an advisory board to assist the owners, directors, or
board to maintain focus on the implementation.
Stage 3 duration may range from 3 – 12 months.
The business may bring on board a Project
Executive whose prime role is to implement the turnaround strategy, allowing
management to maintain focus on their core skills.
For further information contact UCP. |
