Business Turnaround Consulting

Business Turnaround Consulting

Diagnosing the Situation

Many business owners face a strategic crisis at some point in their careers due to financial stress or cash flow. It can be a stressful time and one that you don’t have to face alone. A turnaround is a period of transition, renewal, and pivoting towards growth. The earlier a business realizes that it needs help, the more options you have on dealing with the crisis.

Exit Consulting Group is a full-service consulting firm specializing in developing roadmaps for companies that need a turnaround solution. Our turnaround consultants work hand-in-hand with our clients, helping to define what their win success looks like and then establishing a plan of action to achieve those results.

No matter the size of your company, our Exit Engineers can guide you down the path of recovery and progress. We can also help you plan an exit strategy if you choose to transition or sell your business.

The Goal of Turnaround
Management Consulting

Simply put, the goal of a turnaround consulting service is to determine the severity of the situation and get your business moving in the right direction. As a business turnaround consultant, we will analyze your business from multiple viewpoints such as Financing, Operations, Strategy, Marketing, and Pricing. It is a comprehensive review that will look at what went wrong, what can go wrong, and risk management strategies that can be put into place to prevent any risk recurrence. In addition, we will work to stabilize your cash flow which will help assuage your creditors and lenders.

Developing a Plan

Exit Consulting Group will also perform a critical assessment of the company’s business plan, financing arrangements, and management team. Once complete, we will work with you to formulate an action plan to fix the situation. Since every business is unique, some crisis management strategies and services we recommend may include:

  • Setting specific goals and objectives that align with the goals of stakeholders
  • Restructuring debt
  • Analyzing margins and pricing strategies
  • Selling assets
  • Closing unprofitable lines of business to favor the cash-generating parts of the business
  • Negotiating with suppliers and vendors
  • Competitive Repositioning

Analysis and Action

Our analyses come from an in-depth look at your business combined with our years of experience as business turnaround consultants. Our goal is to help you gain control over the situation. Before we implement a crisis management plan, we walk you through our findings and explain the opportunities and risks with each strategy.

A Path to Stabilization

Reaching a Consensus

Once our analysis is complete and a plan drawn up, Exit Consulting Group will present it to the equity owners or lenders. If everyone agrees with the recommendations, we will work alongside the owner to put the systems in place and the plan into action. Following our turnaround roadmap will ensure you quickly move through each stage of our process and return your business’s profitability.

 

 

What is the difference between Business turnaround
and Business restructuring?

Both business turnaround and business restructuring are aimed at rescuing a business so that it avoids liquidation. However, while the overall goal is the same, they are quite different.

Business turnarounds occur over a period of time in which the business makes a notable effort to improve and bring stability to the business’s future. It is a hands-on process that requires acknowledging the problems, considering necessary changes, and developing and implementing an action plan to resolve the financial crisis.

Business restructuring is a more formal process aimed at helping businesses in severe financial distress. It focuses on the debt and equity of the business, the cash flow, debt carrying ability, and valuation of the business and its components. This formal process allows for different negotiations with creditors instead of the more informal approach of a turnaround.