Every business faces challenges at some point—whether it’s declining sales, rising costs, or unexpected market shifts. For some, these challenges can feel overwhelming, leaving leaders and their advisors wondering how to turn things around. That’s where turnaround consulting comes in.
Think of it as having an expert partner who has successfully navigated similar situations before. They work alongside business leaders, lenders, and stakeholders to stabilize operations, identify the root causes of distress, and create a plan to rebuild stronger than ever.
If you’re working with or advising a business that’s struggling with cash flow, mounting debt, or operational inefficiencies, turnaround consulting may be the key to protecting stakeholder interests and ensuring long-term success. Let’s explore how it works and why it’s a game-changer for businesses on the brink.
What is Turnaround Consulting?
Turnaround consulting is about stepping in when a business is in trouble. It’s a hands-on process where experienced professionals dig into the root of the issues, develop a customized recovery plan, and guide all stakeholders through the implementation process.
Here’s what turnaround consultants do:
- Fix Financial Issues: They manage cash flow, renegotiate debt, and provide the financial breathing room needed to stabilize the business.
- Streamline Operations: By identifying inefficiencies, consultants cut costs and improve productivity to enhance overall performance.
- Develop a Strategy: They create tailored recovery plans that address immediate challenges and position the business for future success.
- Rebuild Confidence: Consultants communicate clearly with stakeholders—lenders, creditors, investors, and employees—helping to rebuild trust and alignment around the recovery process.
Turnaround consulting is more than just a short-term fix; it’s a strategic reset designed to protect investments, improve operations, and restore financial stability.
How Do You Know If Turnaround Consulting is Needed?
For business leaders, advisors, or stakeholders, spotting the signs of trouble early can make all the difference. Here are the key indicators:
- Cash Flow Problems: Difficulty paying bills, meeting payroll, or maintaining operational liquidity.
- Declining Sales: Falling revenues or eroding market share that threaten profitability.
- Debt Piling Up: Struggles to renegotiate terms, meet obligations, or secure additional financing.
- Operational Inefficiencies: Processes that are outdated, poorly managed, or excessively costly.
- Stakeholder Concerns: Low employee morale or waning confidence from lenders, creditors, and investors.
If these issues are familiar, turnaround consulting can help safeguard stakeholder interests and create a roadmap to recovery.
The Benefits of Turnaround Consulting
Turnaround consulting offers valuable solutions for businesses and their stakeholders:
- Stabilizing Finances: Immediate control over cash flow and obligations ensures the business can operate while restructuring.
- Expert Problem Solving: Turnaround consultants bring a fresh perspective and tried-and-true strategies to resolve complex challenges.
- Operational Efficiency: Identifying and eliminating inefficiencies leads to stronger performance and reduced costs.
- Stakeholder Confidence: Transparent recovery plans reassure lenders, creditors, and investors, fostering trust and alignment.
- Future-Proofing: Beyond immediate challenges, consultants create sustainable strategies for growth and stability.
Real Results: A Turnaround Success Story
Resolute recently partnered with a $68 million multi-state commercial bakery headquartered in Arizona to address significant financial and operational challenges. The business needed to transition from break-even performance to achieving an adjusted EBITDA of $3.4 million by 2024 while preparing for refinancing opportunities before loan maturity in 2025.
Resolute’s turnaround consultants worked closely with the company’s leadership, its commercial bank workout group, and Main Street Lending Program (MSLP) administrators to craft a comprehensive recovery plan. This included:
- Operational Enhancements: Optimizing inventory costs, streamlining production processes, and reducing expenses.
- Financial Restructuring: Stabilizing cash flow through detailed budgeting and debt management strategies.
- Revenue Growth Strategies: Identifying opportunities to enhance sales and improve profitability.
- Refinancing Preparation: Addressing lender concerns and creating a clear roadmap for refinancing the MSLP loan before maturity.
This collaborative effort not only stabilized the company but also positioned it for long-term growth, aligning with stakeholder expectations and ensuring financial security.
How to Choose the Right Partner
Not all consultants are created equal. When choosing a turnaround consultant, here’s what to look for:
- Experience That Matches Your Needs:
- Select consultants with a proven track record in your industry and expertise in financial restructuring and operational improvements.
- Comprehensive Services:
- Ensure the consultant offers holistic solutions, addressing both financial and operational challenges.
- Clear Communication:
- Transparent communication and regular updates are critical to maintaining stakeholder trust.
- Speed and Agility:
- Time is often of the essence in turnaround situations, so choose a team capable of quick, decisive action.
Turnaround consulting isn’t just about fixing problems—it’s about protecting investments, rebuilding operations, and creating opportunities for sustainable growth. Whether you’re a business leader or a trusted advisor, having the right turnaround partner can make all the difference.
Don’t wait until it’s too late. Resolute Commercial specializes in Litigation Support, Turnaround Consulting, Business Valuation, Interim CRO Services, and Forensic Accounting. Our team provides tailored solutions to navigate challenges and drive success. Click here to schedule a free consultation with one of Resolute’s turnaround experts and learn how we can guide your business to success.