Corporate Turnaround & Restructuring
Companies experiencing poor performance often find themselves searching for solutions to smaller cash flows, decreasing sales, and piling debt, which can be solved by corporate turnaround and restructuring. The first reaction for many struggling firms is to search for ways to eliminate debt. The true solution arrives by resolving the issues that lead to mounting debt in the first place. Employing the proper strategy and the use of the best practices in a corporate turnaround can relieve growing distress in a struggling organization, which is why JS Morlu can ease this burden and help your business get back on track.
What is Corporate Turnaround and Restructuring?
Corporate turnaround and restructuring is the implementation of a set of actions required to prevent a business from financial failure and return its operation to a steady and normal state. In order to accomplish such a daunting task, the leadership of the turnaround must not only understand their final goals but also have a knowledge of how to reach those goals.
There are a variety of reasons a business could be struggling, from internal causes, external causes, or a mix of both. Customers may not be happy with the product or workers may not be happy with the company. Regardless of the reason for a business struggling, it is important to have a strong base to build an effective turnaround and restructuring plan.
In order to understand the full extent of the problems, business owners should talk with company leaders and decision-makers, employees, and customers. By gathering both internal and external opinions on the reason a business is struggling, turnaround managers can identify areas in the company to focus their efforts on.
Another key external factor for managers to focus on is the change in the market or industry that may have led to a decline in growth. Shifts in the economy could lead to input costs rising. Additionally, new competitors may have entered the market leading to a loss of revenue for a business. Corporate turnaround will identify external factors that may have led to stagnation. In order to successfully turn around a company’s inefficiencies, even if caused by external factors out of the business’s control, an expert may be needed.
What is the Importance of Corporate Turnaround?
When a firm is considering a corporate turnaround, it is likely its finances are struggling, and they are fighting to keep the business operating. Whether it’s from stagnant sales or massive growth, companies can easily find themselves drawn into debt with no idea when the revenue will come. It’s easy to view corporate turnaround and restructuring as a last effort, but it’s just as easy to view it as an opportunity for innovation and the evolution of a business for future growth. The main benefit of a successful turnaround is regaining financial stability.
Business owners understand unstable revenues can be detrimental to the normal operation of a business. A common reason for business failure is the lack of profit. Corporate turnaround allows businesses to regain profitability and financial stability along the way. Not only will corporate turnaround reintroduce financial stability to a business, but it will allow a business to identify and eliminate inefficiencies that may have led to a decline. By regularly analyzing financial metrics a business can utilize a corporate turnaround for long-term stability and growth.
In addition, corporate turnaround and restructuring will allow an organization to plan its finances for the future in a strategic manner. With the help of outside consultants, like JS Morlu, a firm can optimize a yearly cash flow plan with the goal of growth and stability. JS Morlu can introduce new ideas or practices to a business’s finances and operations to eliminate inefficiency and reintroduce profitability.
What is the Typical Corporate Turnaround and Restructuring Process at JS Morlu?
The first step to a corporate turnaround is a deep dive into the finances of the struggling organization. By analyzing key financial figures and trends in the business, JS Morlu can identify focus areas. The goal of a financial audit is to identify and eliminate inefficiencies of any capacity in the organization. Once an analysis has been completed, the team at JS Morlu moves to form an individualized plan for your business.
Oftentimes we can focus on the main areas of concern to complete a turnaround plan. The first area is the internal climate of your company. Your business may be struggling from a lack of internal leadership, leading to incorrect execution of the mission statements or operating agreements, which can have ramifications on company finances. By reviewing and ensuring inter-party agreements and company documents are accurate, the turnaround plan moves forward with a solid structure to build off.
Moreover, another important factor of a successful corporate turnaround JS Morlu focuses on is managing by the means of the business. Optimizing cash flows for the next year allows your organization to understand its means for the future and in the present. Allocating revenues over costs can create an efficient plan for managing a profitable business. Furthermore, the team at JS Morlu will provide you with key metrics of a business’s performance without bias. Consultants can present data and figures to decision-makers to allow them a clear view of the money at hand behind every decision and process in your company.
Beyond optimizing the current processes in a struggling business to induce turnaround, JS Morlu will aid business owners and decision-makers in reinventing and innovating new processes in their firm. Forming new relationships with suppliers and distributors or reinventing the purpose of products are examples of ways to innovate in a business. By generating new ways to do business, an organization can generate new income streams to turn around their finances.
What Services Does JS Morlu Offer?
There are key signs that allow a business to know when it’s time to employ the use of a corporate turnaround and outsource corporate turnaround services. If a business is realizing current revenues below the breakeven point, loans are past due, and debt is piling up, finances are struggling. Additionally, receiving collection calls daily or constantly using credit cards for business needs is a tell-tale sign that a business may not be stable. All of these factors may indicate it’s time to bring in an expert, like JS Morlu. At JS Morlu we understand that there is no set standard when it comes to the issues present in your business, which is why we offer full-scope service options to dive deep into the problems affecting your business. Among the list of services we offer include:
Corporate Analysis
Corporate analysis with JS Morlu will analyze every aspect of your business, from operations to sales. We will not only be able to present you with key metrics which require change but will provide you with a non-biased source to help guide the decision-making process. A corporate analysis is often the first step when it comes time to reevaluate your business structure and operations, meaning you want a qualified expert, like JS Morlu, working alongside you.
Corporate Turnaround Plan
Once turnaround managers, consultants, and business leaders have collected as much data as possible to identify the reasons for a decline in profitability a well-thought-out plan must be created and followed. The plan should include the root of the business’s problems. It is important for the organization to understand what went wrong and led to financial failure. Due to the high level of intricacy required for an effective turnaround plan, a qualified consultant is needed. JS Morlu offers corporate turnaround plan services tailored to your business needs, ensuring you have a clear vision of the necessary next steps.
Corporate Restructuring Plan
A corporate restructuring plan is similar to a turnaround plan but includes other elements. Restructuring your business can include developing a rebranding plan, revamping the mission statement, and changing operational goals. Identifying key areas that need restructuring is no easy task. Many business owners, regardless of business size, turn to JS Morlu to aid in the intricate process, giving their business the best possible chance of success.
Operational Optimization Plan
Part of planning for new marketing and sales techniques is revising and optimizing operational practices within a struggling business. If sales are expected to increase but the root of a business’s problems are found in the operations, a turnaround effort will be unsuccessful. Operations are the base of every successful business. Ensuring all operations are optimized and new practices are planned for leads to a higher chance of success and profitability. JS Morlu can work with you to uncover your operational inefficiencies and develop a viable strategy for overcoming these issues.
Next Steps
At the end of the day, a business searches for corporate turnaround and restructuring options in order to stay in business and serve its customers and employees alike. The goals of any corporate turnaround and restructuring should be to optimize the business for all stakeholders involved and long-term stability. Centralizing turnaround goals around the people and things that matter is oftentimes the best practice to employ. JS Morlu understands the level of effort needed to draft a plan tailored to your business’s needs, making us an asset to have on your side. Reach out to one of our team members today to get started.
