Our Business is to Navigate Your Business Out of Trouble into Growth
Remember starting the business… you pursued a goal. You readily worked long hours for better days ahead. For years it was all about reinvesting profits, more borrowings, expanding the team and facilities to grow.
There were some great years, fun, albeit you missed a bit of family time.
But something has changed, it’s now become more work,
more debt & more stress.. and the economy is not helping!
- The business is near 'Crisis Point'.
- Cash is the problem. Time is the enemy.
- More money won't restore profitability.
- Deep change is needed. You need help to survive.
Our business is to help you rescue, restructure and revitalise your business.
A successful turnaround process is for owners committed to making significant changes and prepared to work hard to save their business.
Our Founding Vision
"To protect, preserve and grow business value for owners by working with committed owners through a well structured turnaround process"
Many of our team has witnessed and experienced the destruction of business value when owners lose control and ability to manage financial crisis situations. Too often "insolvency" & "liquidation" becomes the end game. We founded Turnaround Business Partners" to offer a superior solution to ALL stakeholders.
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Industries We Are Comfortable Working With...
Most of our team come from industrial, manufacturing, production and retail industries. We enjoy their down-to-earth feel.
Put simply, we understand businesses that...
- Mine it
- Make it
- Move it
- Grow it
- Show it
The principles for a business turnaround and our 5-WP process equally applies to services, government and financial sectors. However our team enjoy and feel comfortable in industries that are physically changing things to create wealth.
Our team can work at every level in these organisations. We understand production processes and 'shop floor' talk. We're just as comfortable suited up negotiating with creditors, bankers and boards.
What's a 'Turnaround'?
A
business turnaround is a multi-stage process that (with the agreement
of secured lenders & creditors) leads to a restructured and
profitable company that can pay its bills on time, whose assets exceed
its liabilities, and generates a fair return for its owners.
A successful turnaround results in a revitalised business that has
survived a financial crisis, protected its owner’s personal assets and heading in a new direction.
How We Work
Our business turnaround specialists are pragmatic, hands-on and multi-disciplined professionals. We are not there to shut the business down, our goal is to find ways to save it.
There is no criticism of prior decisions, we're there on the same team. We look forward with fresh eyes and implement pragmatic decisions. Time & money will
be required. As will professional focus and commitment to execute a new strategic
direction.
Engage our Skills & Experience
Our team have a wide range of down-to-earth industry experience, professional training and skills. Many have been in the same situation as our clients. We know how it feels and we know what to do.
Engaging our team enables the business to implement solutions that are beyond the owner's relationship with stakeholders.
Your bank may already have you on their books as a
"special asset". This means they may be more interested in liquidating
your business than saving it. When they appoint a receiver the deal is
simply, get our secured debt and the balance can pay fees. It's unlikely
that a unsecured creditor, let alone an owner will ever get value.
It's a conflict of your interest in turnaround. Better to manage the process to protect value for ALL stakeholders.
Too often intervention by
turnaround professionals comes too late to reverse or prevent actions by
secured lenders or aggrieved creditors to dismantle a business to
satisfy their debts. There's little understanding nor interest in
preserving intangible value that's vital for an owner to rebuild a
business.
Under these circumstances the
prime objective of owners is to manage or control the process. In this
way above par recoveries can be achieved, which particularly affects
staff and unsecured creditors. Business owners gain from our experience,
creativity and heart felt empathy through the process.
A well managed insolvency
process also goes a long way to ensuring the reputation and community
standing of the business owner is preserved. Where appropriate we will
draft 'deed of arrangement' terms which are fair, never punitive.
Beyond this we've experienced
owners getting out from the burden of debt and being reestablished in
new a business - debt free and profitable. A liberating outcome.
Signs of a Troubled Business
Executives managing corporate distress will encounter similar emotional stages: denial, anger, bargaining, depression, and finally acceptance. The last stage is when most engage turnaround professionals; unless they are forced to do so earlier by a lender, equity sponsor, or other stakeholder.
Most businesses in distress display more than one of these external and internal signs of trouble:
- Explosive Growth
- Over-diversification
- Precarious Customer Base
- Market Lag
- Operating without a Business Plan
- Ineffective Management Style
- Lack of Operating Controls
- Weak Financial Function
- Poor Lender Relationships
- Family vs. Business Matters
Business owners who recognise and acknowledge the signs of trouble and
get help in the earlier stages have a much better chance of a
successful recovery.
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A Tough Decision in Bad Times
Trying to deal with increasing business pressure can be very lonely. The world is on your shoulders.
Everyone expects you to fix the problem.. your lenders, your creditors, your employees...and your family.
When a business is in trouble, no
decision may be more crucial than hiring a turnaround consultancy.
With
all the distractions, and day-to-day pressures building within a
the company, this decision must be made at the worst possible and most
stressful time. Time, indeed, is often of the essence.
Business Turnaround is a Journey
The 'Business Turnaround' process is of 5 stages; each requires different style of management and decision-making.
Initially all stakeholders will begin the journey feeling threatened,
fearful. By the end, we expect they'll be relaxed and satisfied.
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