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TURNAROUND MANGEMENT

In times when a firm is in clear distress, EXIANCE is brought in to devise and efficiently execute a plan to stabilize cash, restructure operations, and get the organization back to path of a sustainable profitability. This process is predicated on the fact that the organization has a viable offering / product that makes it worthy of “saving”. We frequently encounter the following root causes in such situations:

  • Inappropriate capitalization and/or excessive debt
  • Impaired cash flow
  • Overly optimistic sales projections based on poor assumptions
  • Decrease in sales / market share due to economic conditions or efficient competitor
  • High cost structure within a commoditized market
  • Management's lack of execution of a good strategy
  • Underdeveloped infrastructure and internal controls
  • Strength and clarity of strategic plan

PROCESS


We conduct an initial due diligence meeting with the key sponsors to gather pertinent information on the company/capital structure, business model, market forces, depth of management team, specific challenges, etc. Based on the outcome of our initial due diligence, we select the right associates on our team with the requisite industry experience, depth, and behavioral attributes to manage and execute the process.


Once the individual or small team has been identified and deployed, we engage in a disciplined situational analysis to evaluate the prospects for survival. Once complete, a short menu of options is presented to the sponsors that may include:

  • Changing management
  • Cost reduction / containment strategies
  • Divesting non core assets
  • Recapitalization
  • Strategies to drive top line sales

After the sponsors agree on a course of action, the EXIANCE team will move quickly to stabilize cash flow and execute the components of the restructuring/turnaround plan. Once the company reaches pre established sustained benchmarks, EXIANCE works to transition ongoing maintenance to the new or existing management team.


We deliver four main services through our Management Consulting Practice. Please click on the links below for more detailed information:

 
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