When your business is solvent, but fail to meet sustainable profitability
Interactive calculator: Calculate the probability of financial distress to your manufacturing business
All businesses can be defined according to their respective growth phases or financial performance. When a business is solvent, but fail to meet sustainable profitability, business turnaround is normally required to change the financial trend. In contrast, business rescue is considered when a business is borderline solvent, or there exist a high likelihood that the business may become insolvent in the short-term, and where the availability of working capital is very limited or non-existent.
In contrast to business turnaround, business optimisation is normally undertaken when the business is solvent and has achieved profitability, but the desired performance levels falls short of expectation, and there exist room for improvement.
The success of any consulting intervention can be gauged by the availability of resources, management capabilities, stakeholder support, time available, and the prevalence of risk factors. The sooner a business turnaround is undertaken, the higher the likelihood of success. Delayed business turnarounds are more likely to end up in business rescue or liquidation, and are in most cases more expensive, with a marginal likelihood of success.
We have a proven track record in business turnaround consulting, and have been providing innovative consulting solutions to industry since 2006. We are accredited business turnaround consultants to Productivity South Africa, and have supported numerous manufacturing companies develop successful turnaround strategies.
Our consulting interaction typically commences with a critical business financial evaluation of the business, which is followed-up with a comprehensive report and feedback session with management. This phase normally precedes a formal strategy review session. This approach is not only cost & time effective, but enables all parties concerned to identify and define any possible cooperation that may follow.
Our consultants and network of professional associates, which include business rescue analysts and practitioners, liquidation and company law attorneys, labour law specialists, and tax specialists, are all experienced and qualified to support your business with this challenging process.
Considering business turnaround, as an alternative to business rescue or liquidation, is not always easy and may require some assessment. Our experienced team will assist you with the evaluation process, and discuss all the possible alternatives available.