Turnaround
and performance improvement - ABOUTTURNAROUNDS!
Business
failures are invariably due to management failure through:
Loss of market
share.
Over optimism in planning
Imprudent accounting
Erosion of margin
Obsolescence of product / technical
failure
Over gearing
Excessive overheads
Lack of working capital &
long term finance
…
and often leads to the need for swift action to prevent
liquidation.
Successful
recovery strategies
Asset reduction
93%
Change of management
87%
Financial control
70%
Cost reduction
63%
Debt restructuring
53%
Improved marketing
50%
Organisational changes
47%
Product/market changes
40%
Investment
30%
Growth via acquisition
30%
aim will take instructions from the client (bank, shareholder
or director) to carry out a diagnostic and develop an
action plan as follows:
The quick fix. Short term analysis focused on cash and how to achieve
stability.
The initial action plan. Reduce borrowings and generate a short term profits improvement
plan. It will be important to look at forward visibility
of cash flows and maintain cost reduction and stock reductions
as appropriately determined by the core business requirements.
The Business Review. A programme of client workshops , customer surveys, and
agreed actions to get management on board.
