When a Business Faces Serious Challenges, Clarity and Action Matter Most
Signs a Business May Need Turnaround Support
Companies often seek assistance when they begin experiencing challenges such as:
little or no liquidity
suppliers or bankers making demands you can’t meet
declining sales or margins
rising costs
operational inefficiencies
strategic misalignment
leadership or organizational issues
loss of key customers or market share
Addressing these issues early can often prevent deeper financial or operational problems.
What does my turnaround plan consist of?
Assess
An accurate and realistic determination of your situation must be made. What are the true causes of this situation? How serious are they? Does a turnaround appear feasible or should you consider a sale or liquidation? How much time and cash do you have to develop a turnaround plan? Do you have ways to buy more time? Arming yourself with an accurate assessment will help you make the right decision.
Identify Options
You need to know your options and hopefully, you’ll have more than one. The options need to be developed, evaluated, and modelled. Pros and cons must be carefully considered. The options are frequently diverse and complex and usually involve compromises for one or more of the involved parties (you, investors, partners, lenders, suppliers, managers, employees). Understanding, predicting, and being prepared for how these parties might react is key. Fallback positions should be developed if they don’t react in the way you anticipated.
Create an Action Plan
Once the best options are determined, a game plan and timetable need to be developed, and then presented to all key stakeholders. They will likely ask many questions about how the plan will impact them. Their buy-in must be obtained unless you have sufficient leverage to force them to go along with the plan. The more prepared you are, the more likely you will be able to answer their questions and satisfy their concerns. A deliberate, clear, and transparent plan will usually build trust and credibility.
Execute
Once a game plan is agreed upon by all key stakeholders, successful execution, speed, diligence, and flexibility is essential. Not everything will play out exactly as planned and changes will need to be made without perfect information, and in a manner that still delivers the desired outcomes. Staying focused on the ultimate goal is key.
Bankruptcy and Crisis Management
Should you be involved in a bankruptcy situation, we can assist with strategy and planning, and developing and negotiating plans of the reorganization.
We are experienced in performing interim chief restructuring officer responsibilities, providing interim management services working with Trustees and Creditor Committees, managing §363 sales and bankruptcy liquidations, and claims and preference analysis and management.
We can also assist with bankruptcy alternatives, including out-of-court workouts, receiverships, assignments for the benefit of creditors and secured party or Article IX sales. Parkland’s restructuring advisory team can assist you in navigating the turbulence of difficult business situations.
Typical Outcomes of Turnaround Support
Companies that address challenges early often achieve:
• restored profitability
• improved cash flow
• clearer strategic direction
• stronger leadership alignment
• renewed growth opportunities
Experience That Matters
Parkland has turned around hundreds of middle-market companies across industries including:
• manufacturing
• distribution
• construction
• service businesses
• professional service firms
Our experience allows us to quickly recognize patterns, diagnose challenges, and help leadership teams focus on the actions that will make the greatest difference.
Taking Action Early Makes a Difference
Periods of difficulty are a normal part of the business cycle.
When addressed thoughtfully and decisively, they can become opportunities to strengthen the company and reposition it for future growth.
If your organization is facing significant challenges and you would like to explore possible solutions, Parkland would welcome the opportunity to speak with you.