Turnaround consultants are experts in helping companies succeed. They assess the current situation of a business and develop a plan to improve it. This plan may involve restructuring, improving processes, organizational changes, and identifying areas for improvement. The objectives of a turnaround typically include structural reductions, achievable short-term goals, and preparing the company for transformation. When making changes, consultants must be prepared to have difficult conversations with managers.
Business leaders must be honest and transparent to help consultants quickly identify the most vulnerable areas of the company. Management consultants play a vital role in critical thinking and implementing the execution discipline, and the company must provide the consulting team with the resources and information they need. Transformations are important changes in the operating model, people, processes, and the organization as a whole. The solutions focus on a company's weaknesses or problems and aim to achieve dramatic improvement. A certified restructuring professional, certified international director of restructuring, former president of the Turnaround Management Association, author, speaker, and regular advisor to companies, institutional and private equity investors, and governments can help with this process.
When restructuring, all stakeholders should be on board with moving forward to the end goal of a restructured entity. Compared to restructuring consulting, more detailed guidance is usually required with regard to systems, structure and strategy. To achieve a successful business recovery, the value of assets must be protected by demonstrating viability and showing that the company is in transition. This analysis should culminate in the formulation of a preliminary action plan that outlines what is wrong, potential solutions, key strategies to guide the bank in a positive direction, and a cash flow forecast (at least 13 weeks) to understand cash usage. The person leading this process must have a proven track record and the ability to form a management team that can implement change management strategies to turn the company around. Experienced consultants are essential for successful change and transformation as they will bring experience and well-thought-out strategies. The chances of success increase dramatically if a restructuring plan that includes these stages is implemented and followed.
Arthur Mansourian has a 12-year history as a management consultant and investment banker, advising clients on valuation, capital markets, structured finance, mergers, acquisitions and divestments, and general corporate strategy. Using recovery and transformation as tools to help companies of all sizes can be the fundamental point for a company's future. For businesses looking to succeed in today's competitive market environment, turnaround strategies are essential. With the help of experienced consultants who specialize in business recovery and transformation processes, companies can identify their weaknesses or problems and develop an action plan that will lead them towards success. By implementing change management strategies such as restructuring plans that include achievable short-term goals and protecting asset values through demonstrating viability during transition periods, businesses can ensure their long-term success.
