CONSULTING SERVICES FOR DISTRESSED BUSINESSES

Our experts have significant experience running, restructuring and growing businesses and can offer a range of consultancy services to distressed business including:

 

RELEASING CASH

‘Cash is King’ in any business but in a distressed businesses it is critical. Nothing can replace sales, but when they are tight, there may still be ways of releasing cash. Excessive inventory levels, poor cost control management, low contribution margins, pricing models and inefficient operations are just some examples of where short term improvements can be made in order to release cash into the business.

COST BASE IMPROVEMENTS

Generating cash can be achieved by managing the cost base more effectively. In good times, it is easy to de-prioritise cost management when focusing on growth, but when a business is stressed, costs become all important and cost control and cost reduction become a prime focus of the management team. The finance team play an important role here but often they look purely at numbers, disassociated from key strategic decisions - cost control should help position the business for better times along with improving operational performance. Focusing on the right areas to preserve the opportunity for growth is key. Our experts can help you achieve an improved cost base whilst keeping a firm eye on what is important to your business strategy.

 

RESTRUCTURING

When a business is in distress, it is normally felt across the organisation. Employee morale suffers, management increasingly get stressed and efficiency throughout the business falls, further decreasing business performance. This can be a very unhappy spiral to get into and very difficult to correct. Sometimes in these situations the only sensible action is to have a fundamental and swift restructuring of the business. As difficult as this can be, acting quickly and decisively can pay dividends. Our experts have been through many rounds of restructuring over the last 25 years and have consequently developed considerable experience in this area.

 

MARGIN IMPROVEMENT

More often than not, in long term distressed businesses, profitability is the issue. This can stem from poor blended product margins as a result of incorrect pricing models, low contribution margins as a result of high production costs or just too much overhead in the business. Either way, the issue needs identifying and resolving. We have years working with these issues and I can help.

 

MENTORING

Sometimes as business leaders it can be difficult to see the wood for the trees and we need someone to talk to, run ideas past and to get alternative perspectives from. Often, those people come from within our organisation. Sometimes it can be trusted friends. But sometimes we need to talk to people who have direct experience of the issues we are facing. We have experts who can offer impartial, unbiased and experienced advice as and when you need it.

 

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