Corporate Turnarounds

Most underperforming businesses have at least one thing in common - they destroy enterprise value. Underperformance is not selective; it has the same wealth destroying implications for both private and public companies.

If enterprise value destroying performance persists, key stakeholders must take decisive action. Inevitably, major change is required to avoid eventual corporate failure. The management of a distressed situation requires urgent and decisive action. Turnaround experience is vital if a distressed company is to survive. Allen Capital has the experience and track record to deliver the skills and resources to ensure the turnaround is successful.

Allen Capital's turnaround approach is an integrated, "action orientated" process. The approach includes the following stages:

• Diagnosis;
• Stabilisation;
• Development of turnaround strategies;
• Development of implementation plans;
• Implementation; and
• Business renewal.

The approach is flexible and tailored to the individual requirements of each engagement - which may lead to certain stages of the process being more or less prominent.

Turnaround strategies usually involve a combination of the following initiatives:

• Organisational and structural re-orientation;
• Product market refocusing;
• Revenue generation;
• Cost reduction;
• Divestment of under-performing business/assets;
• Acquisition of new businesses/assets; and
• Financial restructuring.

Ultimately, it is the implementation of the strategies that will determine success or failure. Allen Capital's "hands on" approach includes:

• Stabilisation of the immediate crisis;
• Management reporting to key stakeholders;
• Determination of the turnaround plan with key management;
• Management of resource selection and allocation;
• Management of operational and strategic issues; and
• Monitoring turnaround performance.

Please contact us if you require further information.

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