An effective business turnaround plan can mean the difference between success and failure. It can get your company back on track following a financial jolt or sustained underperformance. But effective cash management strategies are vital to keep your business streamlined and fully focused even in the best of times. 

Whether you’re part of a struggling organisation or aiming to optimise operations, we’ll support your company at every step. 

A business turnaround strategy is a plan designed to stabilise an underperforming or struggling company. It aims to put the business on a more sustainable footing during a period of stress, preventing failure and ultimately placing it on the path back to growth. 

A business turnaround plan may be needed for many reasons, from running low on cash to losing a major customer. An effective strategy can tackle each problem and identify ways to overcome them. It might involve cost-cutting, refinancing, discussions with lenders or increased marketing efforts. 

But the key principles of business turnaround management aren’t just for underperforming companies. Diligent cash management also helps growing firms stay on the right track. 

Whatever your company’s scale or financial position, there are several ways we can help with turnaround advisory and cash management solutions. 

Business turnaround planning and implementation 

With extensive industry experience delivering turnaround and transformation for stressed and high-growth businesses, we cover the end-to-end process. Whether you need strategic assistance or in-depth support and project management, our Institute for Turnaround accredited partners can help. 

S&W is an Institute for Turnaround corporate partner. Several of our team are also personally accredited to the highest standard by the institute for their expertise in helping underperforming businesses avoid unnecessary insolvencies. 

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Operational improvements 

Combining segmental data analytics with business understanding, we put the spotlight on underperforming sales or margins, overspent costs, inefficient operational processes and ineffective controls. 

We work closely with businesses to achieve targeted improvements and provide tools to monitor ongoing performance. 

Working capital cycle review and improvement 

We combine data analytics, industry insights and commercial acumen to review the whole working capital cycle, identifying tailored improvements to processes, practices and controls. 

Using segmental working capital analytics, we drill down to issues’ root causes and identify and target achievable solutions monitored through live dashboards. 

Our working capital consulting service can also focus on single areas, such as customer receivables, stock or trade payables. 

Integrated cash flow forecasting 

Our experts can help improve your cash flow forecasting. We make forecasting more robust and enhance predictive effectiveness by systemising inputs, streamlining processes and building in feedback loops. 

Our integrated approach to cash flow management improves forecasting speeds, enables data-led decision-making, enhances stakeholder confidence and manages risk. We also provide complex financial modelling services. 

Targeted troubleshooting support 

With wide-ranging industry and advisory experience, our cash management and business turnaround professionals can provide a tailored troubleshooting service to fix issues from data cleansing to unblocking project delivery. 

We get involved when leaders are dragged into the details and lack sufficient time or when an external voice is required to focus attention and ensure delivery. Our support lets leaders refocus on strategic issues. 

Stakeholder management and monitoring 

We draw on industry experience to conduct strategic, financial and operational business reviews for options and recommendations. 

We also complete targeted, tailored reviews for stakeholders on risk areas such as cash flow forecasting or receivables conversions. 

What makes S&W different?

Whether improving your cash flow or working capital consulting, our highly tailored, hands-on services set us apart.

Our experts don’t simply write reports that are soon forgotten. They delve into what makes your company tick, writing business plans, helping with strategies and supporting project management.

We also provide an interim management service, and our experts can serve as directors of your firm.

Frequently asked questions about business turnaround and cash management

You can potentially relieve cash pressure on your business in three ways:

  1. Unlocking cash from the balance sheet through improved working capital or disposal of surplus stock or non-core assets
  2. Profit and loss improvements, including identifying cost reduction opportunities
  3. New finance (debt or equity)

Even identifying the best option for your organisation can be difficult, let alone the planning and practical implementation. Our business turnaround and cash management solutions can help.

We’ll complete a 360-degree business review to identify the right route forward, giving your board and stakeholders confidence in the solutions. We pride ourselves on supporting successful implementations to free up cash quickly.

There are various potential sources of finance, with pricing dependent on the level of risk for the lender. However, agreements with incumbent lenders, available security and profitability often restrict businesses.

Asset-based lending often works well when businesses want quick finance and have assets available as security. Our cash management services bring a strong knowledge of the market, including specialist and niche lenders. We understand what options work well in the timeframes available.

In some circumstances, seeking loan repayment deferrals from existing lenders may be appropriate. There is a lot of work to do to achieve the best chance of a lender agreement, however.

Ideally, you should prepare integrated financial forecasts, including sensitivity analysis, a detailed short-term cash flow forecast, and a review of available security. You should also be able to show that you’ve considered and tried the alternative options. If operational or financial improvements are required, you will need to share project plans and tracked performance. This will give the lender confidence in your ability to deliver.

When timing a request and preparing information, it’s important to consider your relationship with the lender and previous deferral requests. Our experts will ensure all your information is carefully and thoroughly prepared and that alternative options are carefully considered.

Releasing tied-up cash can give valuable breathing space to a business, freeing up time and reducing pressure.

Various methods are available to help you unlock cash and improve working capital:

  • Selling assets
  • Raising finance against assets
  • Lowering cash tied up in working capital by extending the time to pay creditors or reducing stock balances and the debtor payment cycle

To identify the best solutions for your company, it’s essential to understand the whole picture and the overall working capital cycle. We can analytically review your balance sheet and supporting dataflows to identify opportunities and help with their effective implementation. Embedding solutions may require operational reforms, such as contract changes, debt collection processes or sourcing arrangements.