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Kym Heffernan:
Introduces Business Turnaround
 
 
Member # 1173684 Member

How We Work with All Business Stakeholders  

Working together achieves goals

Bottom line...
we believe that all business have the potential to be turned around.

Time & money will be required. As will professional focus and commitment to execute a new strategic direction.

We are not specialist insolvency practitioners, lawyers, a cash-flow funder nor an accountancy firm; we work with them as appropriate.

Our focus is to firstly ensure your business survives the crisis, its key assets are protected, and then we rebuild sustainable business value.

As the turnaround specialist, we can operate as either an interim manager or consultant, we may replace a company’s CEO and temporarily take over the decision-making processes of a company to lead it toward stability. Alternatively, we may become an active adviser to a troubled company’s board of directors.

Act early. Earlier the better.

Unfortunately procrastination means not every troubled business can be saved. For a few, they can only be sold or closed. A better return to all stakeholders can be achieved if the decision is not forced on the directors.

We strongly recommend that owners take the initiative to engage us before other stakeholders take your choice away

 

We're Turnaround Specialists

The Turnaround PerspectiveAs turnaround specialists we enter a company with a fresh eye and complete objectivity. We're not there to shut it down, we look for ways to save it.  We can spot problems and see a better course not be visible to company insiders.
 
Too often owners rely on their accountant's or lawyers advise. Whilst well meaning is too constrained to identify and fix core problems that lead to the situation. We have the "Turnaround Perspective", whole of business.
 
Our team can recognise issues and implement solutions that are beyond the owner's relationship with stakeholders.

There is no political agenda or other obligations to bias the decision-making process. It enables the sometimes unpopular, yet necessary, steps to be taken for a company’s survival.

Our specific experience within a particular industry is less important than experience in crisis situations when a company is facing insolvency or the loss of millions of dollars in revenue. As professionals, we must make critical decisions quickly to staunch the financial bleeding and provide an opportunity to survive.

Initially we are operating in the eye of the storm, we must deal equitably with angry creditors, frightened employees, wary customers, and a nervous board of directors. It's a challenge with risk and satisfying reward.
 

 Working for Owners

Being Invited into the business.
We hope that our first contact is with the concerned owner, directors or senior manager of the business. They may have been 'guided' to contact via pressure being applied by other stakeholders (like lenders, lawyers).
 
For whatever reason, it’s important for the turnaround that we are invited in with the demonstrated support of the owners.
 
Working with owners
When a business is in trouble, everyone but the owners seems to present their rights and claims. There is a fair chance that these other stakeholders have lost confidence in current management and want to take some control. However we know, that if owners are not in control, then a lot of business value will be stripped away by other vested interests.

Engaging us will retain control of a troubled situation. It can prevent value destroying games being played out on the owners. We know it's difficult for owners to step back, however most pragmatic owners recognise the value of fresh eyes making the decisions that change direction.
 
Operating within the business
The fastest and most reliable way to know where the business is up to is to work within it. We mean in your offices, on your production floor and in the warehouse. If our team are going to analyse and recommend changes, then the best results are achieved by being involved onsite as part of the new direction.

You don’t come to our offices; we come to you. Private meetings take place anywhere convenient. As necessary we’ll put on the suit to go meet the financiers, banks, creditors or Tax Office. If its internal issues, then we’ll wear the hi-vis shirt to fit in.

Turnaround is a journey, our role adapts over time to suit the changing situation. We’ll probably need a business card.
 
 

Dealing with other stakeholders

Customers, bankers, creditors and employees all have legal rights in the business. They should all have a vested interest in supporting a successful business turnaround. Most will back the business if there is a reasonable chance to save it; and give it a new direction.
 

We negotiate arrangements with other stakeholders as necessary including a commitment to a reporting schedule that keeps them comfortable. They will expect to see a change in management authority and we expect our clients to support our decisions.

Customers
Without sales to customers there is no business to turnaround. It costs customers to change supplies, so it's in best interests for them to maintain support of the business. Naturally they will strengthen or seek alternative supply lines.
 

It's essential that there is continuity of supply and representation. We can do a lot to secure their support.

Primary Lenders, Bankers
Your primary lenders will usually have high priority claims over the assets of the business. This security is usually further supported by a range of covenants associated with the debt, the activities and other matters involving the owners and/or directors.
 
Unfortunately when a business hits trouble, the owner is too focused on saving he situation to notice that one or more of the term loan agreement was breached. This creates the leverage for increased scrutiny. In crisis they have the safest position and generally the most power.
 
Fortunately, bankers don't want your business to fail, and becoming a "special asset" has little upside. 
 
Engaging business turnaround professionals demonstrates to bankers that owners are both aware and willing to make changes to the business to improve its situation. Bankers are likely to support these actions and leave owners in control.
 
Creditors (ie Trade / Unsecured)
There are many security arrangements agreed, legislated or implied with the creditors a business trades. In troubled times they will all be "stretched" to various or lesser degrees. The extent most often depends on the importance of the relationship and the pressures in their market.
 
Almost certainly your key suppliers have a strong self interest in your business surviving, continuing to trade and growing. They are the most likely group to support  engaging professional turnaround management. Providing we keep them informed of the situation, and they are confident that their position can be bettered, they will be supportive.
 
Employees
Business employees have high involvement and interest in the business turnaround. Not the least their job and accumulated entitlements. Without their continued participation and contribution success is unlikely.
 
Interim turnaround management is usually welcomed and supported. They expect honest communications about the (personal) impact of the changes. Unions may represent staff.
 

Our Skills & Experience

 Our team have a wide range of industry knowledge, professional training and down-to-earth frontline business experience. We’ve ‘been there-done that’ and have the empathy and skills to turnaround a business.

All partners have the benefit of experience in medium and large corporate environments; and moved on. We prefer the small to medium business environment that rewards innovation, flexibility and faster decision-making.  Many have experienced the start-up, growth, consolidation and (a variety of) exit phases in businesses.

Turning around a business from under stress into strategic growth, requires a range of professional disciplines to be applied throughout the process. It’s likely our ‘Accounting, Finance & Funding’ partners will take the early lead if the immediate survival of a business is under pressure of creditors and financiers.

Once beyond crisis our ‘Strategic Business Building’ partners will lead the turnaround as it transitions into a new growth phase. Focus is on achieving strategic and financial goals.

As the exit approaches we’ll rebalance the team to provide comprehensive guidance across a range of areas. This may include accelerating growth, strengthening teams, optimising capital structure and targeting acquisitions to deliver the highest value Ultimate Goal.

Click here to Meet the Team