Our Services - Turnaround Management Programs

Turnaround management is a unique skill set, designed to preserve and add value to business organisations and corporations who fail to meet performance expectations.

Turnaround Management applies to those:

whose performance is below expectations
who have recently been acquired
who have failed to move to the next stage in their growth cycle
business units that have simply stagnated with understated assets and ineffective management structures
who are encountering early stage financial challenges

Simply, turnaround management applies to any business management team who wants to improve deteriorating short term financial performance.

By identifying and implementing turnaround strategies early enough, recovery can take place without the trauma associated with a crisis situation.

The role of turnaround programs as compared to workout and insolvency programs, is best illustrated by the following table:

Program	Objective
Transformation	High level of absolute and relative performance
Turnaround	Sustained viability
Workout	Creditor led, with objectives of reducing indebtedness and restructuring of financial and operational activities
Insolvency	Distribution of assets to creditors on an equitable basis

Turnaround management programs (“TMP”) require a team approach, involving skills drawn from accounting, finance, marketing, IT and HR, working closely with selected management to develop and implement a TMP around a corporation’s strategic financial and operational issues and priorities.

Turnaround Management programs are structured as follows:

Assess

Stablise

Financial
Strategic &
Operational Plan

Implementation

Improvement

SimsPartners has a wealth of knowledge and experience to assist your corporation in identifying, developing and implementing an effective TMP.

Workout Plans

Workout plans are specifically designed to prevent financially troubled businesses and corporations from becoming insolvent. They relate to organisations that are financially troubled and are under pressure from bankers, shareholders, bondholders and/or unsecured creditors.

Workout plans apply to any business management team that wants to ensure that deteriorating short-term financial performance does not lead to insolvency.

By identifying and implementing workout plans early enough, the organisation is given the best chance of avoiding formal insolvency proceedings being forced upon it.

The role of workout plans compared to turnaround and insolvency programs is best illustrated by the following table:

Program	Objective
Transformation	High level of absolute and relative performance
Turnaround	Sustained viability
Workout	Creditor led, with objectives of reducing indebtedness and restructuring of financial and operational activities
Insolvency	Distribution of assets to creditors on an equitable basis

Turnaround plans involve us working closely with management and may be informal or formal. Formal plans may include the appointment of a Voluntary Administrator to affect a formal restructure to which the corporation’s creditors are bound.

Seven key components of a workout plan:

1. Crisis Stabilisation

2. Leadership Improvement

3. Stakeholder Support

4. Strategic Focus

5. Organisational Change

6. Critical Process Improvements

7. Financial Restructuring

SimsPartners has a wealth of knowledge and experience to assist your corporation in identifying developing and implementing a successful workout plan.