HomeFWJ TakeawayCompany rescueBusiness recovery and rescueWhat does turnaround mean in business?

In simple terms, business turnaround occurs when a company experiences some form of financial distress which requires company rescue. Inevitably that company requiring company rescue will contact a business rescue expert with a view to some sort of business restructuring to lead to a business turnaround and full business recovery.

Business rescue expert

A successful business turnaround or business recovery will inevitably involve the advice of a business rescue expert, who will suggest some form of business recovery strategy most suitable for the business. A business rescue expert will have experience in all aspects of company rescue, and can be a specially trained insolvency practitioner, or a lawyer, or a company restructuring expert.

Business recovery strategy

A business recovery strategy may involve company restructuring or business restructuring for a business turnaround. It will inevitably mean assessing certain key components of the business requiring business recovery. This will include looking at the cash flow position and whether this can be improved so that the business requiring company rescue can pay creditors on time and therefore won’t have the worry of creditors threatening formal insolvency proceedings, which can thwart a business turnaround and affect company rescue.

Business turnaround tools

The business rescue expert will advise, but the company may need to assess its management structure and re-evaluate whether the management accounts are adequate and up to date and available to all the managers.

On a company restructuring it is likely that

  • a full assessment of the employees will need to be made as this may assist in cutting costs in a business restructuring.
  • if creditors are pressing, the business rescue expert may as part of a business recovery strategy suggest some sort of either formal or informal agreement being reached with creditors.
  • a more formal process could be that of a company voluntary arrangement being a contractual voluntary arrangement between creditor and company.

If you are looking at what does turnaround mean in business, we suggest contacting a business rescue expert to discuss a business recovery strategy and business turnaround that is suitable for your company rescue requirements. At Francis Wilks & Jones our team of experts have experience on all types of business and company rescue and with the right help and the right business recovery strategy in place, most issues can be resolved. Contact us today to talk through the options for your business.

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