Turnaround

Turnaround

Turnaround involves the restructure of a financially challenged company with or without the use of a formal insolvency procedure.

The “Turnaround” culture for financially distressed companies now firmly exists. It is understood by financial institutions and of course the accounting and insolvency professions and is particularly good news for entrepreneurs and risk takers who are so vital in industry.

What is Turnaround?

It can simply involve an informal workout with a key group of creditors but is more likely to include a detailed appraisal of the company’s trading operation and the implementation of a programme to ensure the company survives and returns to profitable trading.

  • A well structured turnaround programme can avoid formal insolvency.
  • The key elements to a turnaround programme include:-
  • Assessment of the business to ascertain whether it is viable;
  • Identification of areas for restructuring and development of a programme for the implementation of changes required. This alone may not be sufficient to ensure the company can move to a positive trading position;
  • Address cashflow problems by introduction of new/additional sources of funding. Funding options include debt, stock, asset finance as well as general and equity finance. Half the battle is knowing who to talk to;
  • Management of turnaround programme. The company’s management team is likely to need support in the early stages of implementation. Part of the programme may require changes in the structure of the management team.

The Finance Exchange team have over 100 years of combined experience, in working with businesses and management teams to secure commercial finance solutions to address a wide array of financial challenges and an even wider array of aspirations. Our team of experts will guide you through our simple, yet robust 9 step process to identify and subsequently secure the right funding mix from the right lender based on the dynamics of the business and its cash flow challenges, to ensure you can fully focus on turning your business around, secure in the knowledge that you are backed with the right funding solution to allow you to achieve your goals.