Turnaround & Transformation

We are living in unprecedented times. The current economic climate is unlike a recession seen previously and many businesses will be affected through no fault of their own. What's needed at this time,  is a steady hand, a comprehensive review of potential impacts, and a coherent action plan.

When you hire us as your turnaround or transformational specialist, we will develop a custom turnaround or transformation plan for your business and support you to implement it:​

Our turnaround & transformation assessments can typically be completed in approximately one month. In difficult cases, additional time may be required.

Business Turnaround & Transformation Experience Matters

We’ve been doing turnarounds and transformations for a long time and have the expertise and industry credentials to prove it. A long list of clients have successfully turned their companies around and regained their profitability. It’s a reasonable  you can, too.

We have a tried and tested approach that starts by looking at the underlying causes of your problems and working our way through to developing a Business Rescue Plan that will provide a survival strategy. Speed is of the essence and our team is well drilled and experienced.

After the initial interview, the first priority is to review and stabilise the cash flow situation. We would then identify and agree on the emergency objectives and priorities to improve cash flow.

 

The immediate actions to be taken would include: managing bank and creditor communication and negotiating extended payment terms, carrying out a liquidation valuation, establishing a cash flow forecast for the next four weeks, identify non-core assets, cancelling all unnecessary contracts and debit orders, retrenching staff if necessary. 

At the same time the Graphite Business Management team will be collating and analysing the relevant financial and operational information, with a view to identifying the key problem areas, and identifying underperforming assets. This will be formalised into a viability review of the business.

Together with management, we will then prioritise the next actions to be taken to save or transform the business. Having stabilised the business and dealt with all your immediate concerns, the emphasis moves to sustainability.

As a result of our investigations and discussions with management, we will draft the preferred option as a Business Rescue Plan for your approval. We will also provide hands–on help to implement the plan.

The plan will set out a number of clearly defined objectives:

  • Creditor management

  • Cash flow improvement

  • Operational reorganisation and improvement

  • Balance Sheet restructuring

  • Asset protection

  • Shareholders and directors guide to the business rescue process

  • Preparation of financial forecasts and the Business Rescue Plan

  • Implementation of the Business Rescue Plan

The success of the turnaround strategy depends on swift implementation and the Graphite Business Management Team will play an active and critical role in ensuring that the objectives of the plan are achieved. During the emergency phase where the focus is on cash flow and short term survival, our meetings often take place outside working hours including evenings and weekends. We will also monitor progress and take corrective action where necessary.

We will support you throughout the Business Rescue process and will help you understand your own situation in terms of personal guarantees given and your responsibilities and liabilities as a director.

Once the business has been stabilised, we will undertake a post implementation review to assist in getting longer term objectives to ensure the ongoing survival of your business. Once that has been completed, the Graphite Business Management Team will be on hand to continue in supporting you if required.

Summary

By the end of the Business Rescue assignment you can expect to have:

  • stabilised the cash flow crisis

  • disciplined cash flow management programs in place

  • identified underperforming assets and loss leaders

  • improved the operational and financial controls of the business

  • improved control over Capex and overheads

  • better relationship and communications with your  banker

  • personal control of the direction of the business

  • Improved operational performance

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