Turnaround INQ Service Offering

Holders of capital in distressed businesses are faced with three options: close, sell or hold, often involving providing further support. The level of distress of a business is not always readily apparent and whether it holds innate value that can be turned around or sold is also difficult to establish.
Viability assessments also assist directors in managing fiduciary risk. The new Companies Act places onerous obligations on company directors and in certain circumstances, obliges them to place the company under formal business rescue. Failure to do so can render directors personally liable. An external analysis of the financial state of the business can assist.
Viability assessments typically involve a multi-disciplinary team reviewing key aspects of the business for a few days to two weeks. The duration and size of the team depends on the scale and type of business. The output is a frank report to capital holders and/or management on the viability of the business and recommendations as to further steps.
Subsequent to viability assessments, we can provide further services in respect of providing turnaround support, assisting to close a business sale or closing businesses and recovering debt

Business turnaround does not apply only to severely distressed organisations. Many underperforming or complacent businesses can benefit from a good shake-up and refocus. Similarly, a capital provider can initiate a turnaround if they believe that there is a growing chance of underperforming loans or loss of equity.
Turnarounds take a variety of forms. In the ideal case, the existing management has the capability and will to implement a successful turnaround and require support in analysing and implementing a turnaround strategy and plan. Such support takes the form of an operational consultancy. In more extreme cases, a more direct course of action may be warranted by placing an interim manager into the business. Typically this is the top financial and/or executive position, but can vary depending on case. We can provide services in both the above areas. Actions are typically a mix of short-term and long-term steps, starting with aggressive cash management and moving on to business and operational structuring and resource issues.
Business Rescue is a formal process initiated by the directors or other stakeholders of a company in terms of the Companies Act. It involves placing the company under the curatorship of a business rescue practitioner. The practitioner’s responsibility is to report on the company’s viability and initiate turnaround processes where practicable. While we are willing to consider such roles, our preference is to work in a business prior to the initiation of formal business rescue. The formal process can be restrictive and expensive and involves notifying all stakeholders that the company is in distress, which can limit flexibility and hurt goodwill.
Our preference in a business turnaround situation is to be rewarded for success. This can take various forms. Where circumstances warrant it, we are willing and able to inject turnaround finance into a business or facilitate a capital-raising exercise.

In less extreme circumstances where a full turnaround process is not warranted, a business can benefit from having external parties review its structure and operations and propose or implement improvements. We have a wealth of experience on which to draw and can provide a variety of services in this area.

We have vast experience in credit management and consumer finance. Our services range from advice to active management to outright purchases of debtor books.

Businesses inevitably face problems, and in some cases management does not have the specific experience required to resolve them or a resolution would divert focus from more important areas. We can provide external troubleshooting services in a number of areas.