If you can answer yes to any of these questions, call us before it is too late
Are you concerned about the value of your investment? Are you concerned about how you might achieve an exit from this company?
Do you struggle to obtain regular and accurate management information regarding the company’s performance?
Have you been approached to inject more money into the company, but are unsure of the correct path forward?
Do you struggle to get a sense of a clear, joined up plan and strategy from the management team?
Is your relationship and communication with the company’s management deteriorating?
As a shareholder you rank last in any distribution from an insolvency of a distressed company. Distributions are very rare, so you have most to lose and will probably lose all your investment if early action is not taken. You may have no direct control over the decision making unless you are a director and manager yourself or can influence management change or decisions through shareholder or board meetings.
Often you may be geographically remote from the troubled company, reliant on information being given to you by management who may be in denial of problems. This information may itself be unreliable, papering over cracks in the business performance or even deliberately and fraudulently mis-stating information for misguided self-preservation.
Action and decisions that could be taken can be missed by managers anxious to maintain their position and suspicious of outside help. You may have suppressed your suspicions out of loyalty to your employees. But time and money may be running out.
An experienced turnaround manager can provide immediate conflict-free independent advice and support to management. A good turnaround manager will look to preserve the best in management – customer, product and supplier knowledge – whilst guiding and advising on necessary steps to be taken to avoid an insolvency trigger and plot a path to survival and to turnaround.
Unlike an Independent Business Review (IBR), much favoured by financial consultants, support will be both hands-on and immediate, thus saving time and money when time and money are in short supply. We have a breadth and depth of successful experience in assisting management under pressure in distressed situations, recognising that whilst management have the specific product and customer knowledge, the addition of situation-specific turnaround expertise and stakeholder management skills can bring stability and credibility to a situation and establish a business plan for survival and beyond.
Notes, insights and reflections from Matthew, one of our directors and turnaround experts, as he works with companies during Lockdown.