Turnaround and Restructuring

In restructuring and turnaround advisory, we will help you navigate the restructuring process and accelerate change.

As the business environment is being more and more volatile and unpredictable, an increasing number of companies must take dramatic actions to generate impact rapidly or risk going out of business. In the most urgent situations, businesses need to stabilize their finances and improve their operations to preserve value. Working with management, investment bankers, lawyers, and other professionals, we help companies improve results for the benefit of all stakeholders. We work with short- and long-term horizons, and our efforts are designed to have immediate, material, and quantifiable positive impacts.

Typically, business problems unfold in three phases, and each phase requires a unique action.

The first one is a strategic crisis when the company is no longer able to compete effectively. Sales numbers may be stable, or even growing, yet profitability has begun to decline. Very often, management has tried a new strategy, or several, without success. In some cases, management may not recognize the scope of the problem.

If the company does not change its course, the second stage is a profit crisis. In a profit crisis, sales are stagnating or declining, while profit margins turn markedly negative. At this point, the company starts burning through cash reserves and needs to launch a turnaround.

Turnaround failure eventually results in a liquidity crisis when the company faces the fact that it may soon run out of the financial resources necessary for operating. At this point, the management team typically loses the ability to make changes on its own. Various stakeholders, such as banks and other debt holders, will demand a say in trying to restructure the company.