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Venturn A quick fix is not the answer.

Successful turnaround is not just about financial re-engineering, this only raises more money, and buys time.

If you don’t fix the underlying problems, then all you’ve done is waste more money!

Companies who only refinance themselves haven’t changed the underlying problems and root causes, so all they have done is bought more time. They haven’t changed the way the business operates. Eventually time will run out and they will go back into intensive care. To avoid this you need to change the way the business performs; reduce lead times, reduce labour costs, improve gross margins, restructure the management team, clearly define roles and responsibilities. These are real structural changes that improve the performance of the business. This is what business turnaround is all about. A good Turnaround Manager knows this, and a good Turnaround Manager will only entertain the re-financing of a company if they can also see that structural change and improvements are going to follow.

Only real change will give sustainable improvements. So don’t fall into the trap of simply re-financing, particularly if you are also being asked to provide additional security in the form of personal guarantees, cross-company guarantees or a mortgage on your house. If you do, you’re not only wasting your time and money, but you’re also putting your personal assets at risk. 

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