Turnaround Management

Although on the surface, it appears that the recession is finally bottoming out, with an 11.3% decrease in insolvency figures in the second quarter of 2009. However, we must remember that this period normally shows a slight dip, and that there is still a massive 43.2% increase from the same time last year. Business owners must therefore continue to plan cashflow in minute detail and consistently look for ways to reduce unnecessary cost and release available capital, in order to survive.

For those in the throes of severe financial difficulty, turnaround managers can prove to be a vital resource. Turnaround management is the creation and implementation of a strategic plan and appropriate tactics to address a company’s individual financial challenges, which may well threaten the entire validity of the firm. Qualified turnaround professionals will immerse themselves within the firm, absorbing the nature and root cause of its financial stumbling blocks and executing a specific plan, providing that the business is still viable and has the potential to once again become profitable.

There are basic areas of investigation and discussion to be explored when employing turnaround management. These include examining when the problems first began or were noticed and why the management team has decided to bring in external assistance at this time. The actual facts (as opposed to one person’s version of the facts) must be obtained and understood before being able to look at possible strategies and solutions.

It is likely that, at this point, there will be an air of negativity pervading the firm – decline does not go unnoticed. Turnaround managers are experienced in meeting resistance head on and will be proactive in ensuring that tactics are put in place immediately to call a halt to further decline and progressing with perhaps a new structure, new procedures or even new product or service offerings, often backed by securing additional finance.

When to Speak With a Turnaround Management Specialist

If you are at a loss as to why your business is failing, your first step is to carry out a complete audit of the firm, looking at operations and costs. However, if the solution to your financial difficulties is not forthcoming or the problems are too large to be able to deal with on your own, then it’s time to call in a turnaround management team.

Turnaround managers have the advantage of not being historically connected with a client firm. They are happily oblivious to politics, ego sensitivities and culture, the phrase “we’ve always done it this way” holding absolutely no weight. They will act without emotion in the best interests of the firm and although this stage may be awkward and painful for the management and staff involved, they are at least distanced from some potentially difficult manoeuvres and may be assured that whatever happens, happens to keep the business from going under.

How Touch Financial Can Help

Touch Financial has decades of experience in recognising the signs of company bankruptcy or insolvency. Our turnaround management team is able to choose from a carefully selected panel of lenders, often assisting businesses with a capital injection to ease their cashflow and salvage what was originally thought to be an insolvent company.

We offer a range of solutions, each designed to release any available capital or cash reserve. We will help you get to the heart of the matter.

Ring us on 0845 388 9725 or simply complete one of our online quote forms. We don’t charge for our service but will take the time to understand your business and could help you to turn it around.

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