Business Turnaround Services

Directors whose company is close to insolvency are the people this Australian turnaround firm describes as its clients. Business Turnaround Services says it works alongside owners and management teams on strategy, operations and finances to turn extreme financial distress into reliable, sustainable profit and strong cash flow, setting clear timelines and net profit targets from the outset.

Directors under pressure from banks and the tax office

The firm lists the pressures that bring clients to it: banks and lenders conducting reviews, substantial tax office debt and overdue creditors, serious cash flow problems, the threat of liquidation, and weak performance or leadership. It says it suits mid-sized businesses and directors who are ready for radical change and want experienced support to carry it out. It states that radical results require radical change and a willingness to make difficult decisions.

A free first conversation

New enquirers are offered a 45 minute video consultation at no charge, and the firm promises to make contact within a day to arrange a time. The agenda is set out: hear the owner's most stressful issues, learn the background and goals, get specific on debts, compliance, creditors and suppliers, review projected sales, take a big-picture look at profit and loss, and propose a high-level strategy for returning to profit. The firm also covers what resources it would invest and what time the directors would need to give.

The first ninety days

Its stated plan for the first three months is a realistic turnaround plan that steadies the business and holds sales at a consistent level. It negotiates payment plans with creditors on the client's behalf, including the tax office, lenders and suppliers. It builds a customised rolling cash flow report over thirteen weeks, which its management accountants review weekly, and puts weekly measures in place across operations, sales, finance and organisation. It also arranges weekly meetings on those functions with key staff.

Leadership and structure

A cohesive senior management team is treated as a top priority for a fast turnaround. The firm describes strategic and operational transformation driven by financial parameters, including an upgraded business model, with the aim of reaching a target net profit margin.

Terms and team

The firm says clients face no upfront costs and pay a fixed-price retainer. In Australia it meets new clients in person during the first week, and it offers a same-day video meeting with a business development manager or director on first enquiry. It reports a team of more than forty specialists, including management accountants, operations managers, business analysts, process automation staff and sales and marketing experts. Services are sold as a turnaround package with an additional services package, and the firm has offices in Sydney and Melbourne.