Turnaround advisory is the heart of what we do
Business downturns
are inevitable, but few companies are prepared when times get tough and changes must be made. Difficult decisions must be
made quickly - in the midst of financial turmoil - and often without complete or reliable information. Some of the decisions
may have repercussions in a distressed environment that would not be relevant in a normal operating environment. Access to
advisors who have broad experience working with distressed companies could be the difference between dissolution and recovery.
Business
Diagnostic
Once engaged, our professionals take an inter-disciplinary approach to addressing
immediate problems, diagnosing root causes, designing a course to recovery, and executing that plan to completion.
As such, we do not limit our analyses to financial statements. We investigate the company's operations to evaluate
product and service line profitability to make certain that the focus is on the right products and the right customers. We
review all elements of the company's industry to ensure that its strategy, operations and financial structure are properly
aligned. But most importantly, our unbiased oversight serves to reopen lines of communication between management, boards,
shareholders and creditors, which are as critical to a troubled company's survival
as any element of its tactical plan.
- Analyze immediate
cash flows and debt service capabilities
- Review industry and competitors
and assess options
- Evaluate product, service line and customer
profitability
- Diagnose corporate strategy, operations, culture
and financial structure and how these factors impact turnaround feasibility
- Develop agreed-upon course of action
Business Stabilization
Usually the most immediate
problem is cash flow. We focus first on stabilizing the business and keeping it operating. Our professionals:
- Determine the causes behind cash constraints
- Maximize the use of available cash
- Obtain new or replacement
financing
- Identify alternate sources of liquidity
- Create controls to ensure that cash crises don’t recur
Plan Formulation & Execution
Once stabilized, we focus our turnaround efforts on diagnosing
the root causes of business crisis and developing and implementing action-oriented plans that enhance long-term
value for all stakeholders.
Working closely with management, Berwyn Capital Interests develops a turnaround plan
that it includes a clearly defined direction, measurable goals and an appropriate timeline. We then oversee the execution
of the plan, including the critical elements that improve productivity, reduce operating expenses and drive growth.
- Develop
plans with detailed and prioritized action steps
- Create quantitative and qualitative support for each step
- Balance short-term issues and long-term value creation
- Understand one-time restructuring
costs
- Ensure that
plans are reasonable and achievable
Plan Implementation & Monitoring
Unlike some
other advisory services, Berwyn Capital Interests stays with each client through the successful implementation and execution
of the turnaround plan. Our professionals are not just advisors, we have operating experience, and we work
to monitor and adjust the turnaround plan until the company is on the clear path to viability.
- Implement plan quickly and decisively
- Monitor the success of each turnaround initiative
- Monitor changes in the external
environment
- Refine
plan elements as necessary to achieve turnaround success and lasting change
