For businesses which are not in the zone of insolvency but nevertheless not performing as well as expected, BM&T can bring all its skills to bear on targeting areas for rapid operational improvement. The turnaround skills of our professionals are every bit as applicable and valuable in helping a business improve its performance before it slides into further decline. Often an initial analysis can be conducted on a fixed fee basis to identify problem areas and the work needed to effect change. The plans can then be implemented by the company, with us supporting as required. This targeted approach from seasoned business professionals can yield impressive results for a reasonable cost. Areas addressed include:
Many companies find cost reduction a difficult area. Often an independent eye can see things that those involved in the day-to-day management can’t. We take a focused approach to cost reduction, looking to quickly identify areas where maximum benefit can be gained. This might be through high-level review of the structure of a group to simplify and streamline it through to detailed cost elimination to right size a business that has suffered a decline in revenues. On one assignment in a pan-European business, €14 million of costs were eliminated in a €140 million turnover business, all of which fell to the bottom line.
Our professionals all have an industry background and know and understand the difficulties inherent in reducing costs without damaging the business. We also understand that implementing such plans can be painful and can help management to deal effectively with the human challenges that arise.
Cash flow is the life blood of a business but often far less well understood than profitability. Our work in turnaround has given us a deep understanding of cash flow, the complex interactions that drive it and how to improve it. Understanding the working capital cycle is critical to cash flow and we can help identify the problems and issues that have a detrimental effect on cash flow.
Our senior professionals have both operational and financial backgrounds and can help devise sustainable changes to the way working capital is managed, work with management to introduce them and ensure they continue. Quick wins can be attractive, but it is lasting change that delivers real benefits to cash flow.
When a business is underperforming, cost cutting is often the first thing that comes to mind. We frequently find that a review of revenue and margin performance can reveal insights that are often missed. Traditional costing methods do not provide good information for decision making, and profitability by customer, product, or service line is often not well understood.
Our team of professionals have many years of experience at senior level in industry, including senior sales and marketing roles. They can quickly get a grasp of the detail, product competitiveness and channels to market understanding where opportunities for volume or price increases might lie. Our analysis can demonstrate the benefits and we can produce clear plans to deliver them and assist with their implementation.
Notes, insights and reflections from Matthew, one of our directors and turnaround experts, as he works with companies during Lockdown.