Turnaround

It is an unfortunate fact of business that poorly performing companies often reach the tipping point. At the tipping point company management has failed and if anything the situation is getting worse. The company is performing so poorly that the prospect of internally driven or even consultant-supported performance improvement is essentially zero. At the same time, the possibility of attracting a new management team to the failing company also is low; who wants to join a sinking ship? In any case, turning around a failing company requires skills that are different than your typical business manager.

In this situation a company turnaround by TBSC could be in order. We would be retained by owners and creditors to assume temporary management of the failing company. The existing management team is usually completely replaced by our own staff of turnaround specialists. Our first task is to stabilize the cash situation in the company; to stop the bleeding. This usually entails making and enforcing some very unpopular decisions.

We then spend a short while assessing the prospects of the company considering its strengths and weaknesses and the market situation. If we believe the company can be rehabilitated in some fashion then we inform the owners or creditors of that fact and jointly decide how to implement the turnaround program If we conclude the company cannot be rehabilitated then we work with creditors and owners on an orderly liquidation with the objective of maximizing the liquidation value that can be returned to creditors and owners.

After six to nine months the new direction of the company should be well established; the crisis period has largely past although much improvement work typically remains. At this point we work with owners to recruit a new professional management team. When that team is on-board we either withdraw from the company or remain as advisors to the owners and the new management team.

Turnarounds are not common in Georgia, although maybe they should be given the current condition of many companies. TBSC is ready to help owners and creditors with companies that cause unending worry.