Turnaround Assignments

A turnaround assignment will arise when B-management is hired to bring support to a company facing a future cash shortage, as it will be unable, in a near future, to meet payments due to commercial creditors or lenders.

As a first task, the Interim Manager will analyze whether this cash shortage originates in short term disruptions or relates to more structural weakness in the company profitability and cash generation.

The Interim Manager will work, with the financial team of the company, on the delivery of realistic solutions to solve the cash situations:

• In case of short term challenges, he will focus on the improvement of the working capital requirements. He will focus on quick decisions to better monitor the working capital requirements of the company.
• In case of structural challenges, while focusing, as well, on immediate improvements, the interim manager will have to understand whether cash generation matches the products life or might suggest that some products lines should be dropped.
• The Interim Manager might recommend to defer some capital investments or renegotiate financial loans repayment schedule or even issuance of new equity.
• He or she will develop a realistic business plans and  work on the stabilization of key relationships with vendors, banks and labor.

The Interim Manager will make sure that the implementation is properly understood by the management and will be efficiently implemented over the long term.