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