Financial turnaround

What is turnaround?

Turnaround is the recovery of an organisation. Understanding the underlying causes of financial difficulties, operational under performance and seeking advice early are key to securing a company’s long-term future. RSM’s turnaround team helps clients to:

  • stabilise the business;
  • identify the causes of underperformance; 
  • prepare a robust action plan and options; and
  • keep management in control.

When is turnaround needed?

Financial or operational underperformance can often be a contributor to distress within a business. Without quick decisive action a company may see its value destroyed or ultimately fail. 

Signs that an organisation should take turnaround advice include:

  • reduced profit margins;
  • increased debtor/creditor days; 
  • market changes or sector issues; inability to service loan or debt repayments
  • overtrading;
  • lack of management information to manage a growing or shrinking  business;
  • constrained or lack of free cash flow; 
  • working capital increasing;
  • high staff turnover; and 
  • declining credit rating or reducing credit limits.

Why is it important to seek RSM’s turnaround advice early?

It is important for an organisation to obtain advice on current or forecast operational or financial challenges early. Early intervention allows RSM’s turnaround experts more time to implement short and long-term solutions. 

Seeking advice too late can remove options which may have been appropriate causing a company to:

  • move into terminal decline; 
  • suffer a detrimental loss in value; 
  • lose control to external stakeholders; and 
  • become insolvent. 

How does RSM support your Turnaround?

We have helped organisations across many sectors manage challenging, complex situations, restoring organisational value and secure a viable long-term future. 

A turnaround comprises a number of components which require multiple skills to deliver the successful outcome. RSM’s turnaround team have extensive experience in leading organisations through a turnaround. We quickly identify challenges and leverage RSM’s local, national and global resources to: 

  • support management removing stress or pressures to allow them to focus on the day to day running of the organisation; 
  • stabilise cash and operational performance to give time to implement a turnaround identifying quick wins; 
  • manage stakeholder and creditor relationships;  
  • assess the underlying viability of each component of an organisation including its operations, finances and strategy. We diagnose the issues and prepare a turnaround action plan to underpin a restoration of performance and long term value; and
  • secure funding to support the turnaround.

Contact us to find out how we can help your organisation.