A business recovery strategy or turnaround strategy will be needed when a company is reviewing how can a business avoid failure? Inevitably there will be financial problems and solvency issues in a company looking at a business restructuring or business turnaround in order to effect a company rescue.
A turnaround strategy in business can include a number of elements, depending on the problems within the company seeking business recovery or business turnaround.
- It is likely that a business recovery strategy will be put in place once a company requiring company rescue has contacted a business rescue expert to review what business recovery strategy is best for their company in order to overcome business failure and bring about a successful company rescue.
- A successful business recovery strategy might include some form of formal company insolvency process such as a company voluntary arrangement. This is a contractual voluntary arrangement between a company and its creditors giving the company some breathing space in order to effect a company restructuring and a business turnaround, in order to repay its creditors in due course.
It may be that a business recovery strategy devised by a business rescue expert will also consider certain less formal business recovery strategies, such as cost cutting measures, re-evaluating employees, considering the management structure, and refinancing, in order to improve cash flow.
If you are asking the question what is a turnaround strategy in business, then we suggest seeking the advice of a business rescue expert as soon as possible to consider if a business turnaround by way of a business recovery strategy is suitable. At Francis Wilks & Jones we can talk through the options for your business and look at the correct business recovery strategy for you. Contact us today to discuss.