Turnaround of Distressed Companies and Execution of Business Plans
As a business growth strategist who specializes in turning around distressed companies, I’ve learned to identify the warning signs that indicate when a business is in trouble. These signs can range from declining sales and profitability to cash flow issues and employee turnover. When a company exhibits these symptoms, it’s essential to act quickly to address the underlying issues and implement a turnaround plan.
With so many businesses struggling to navigate the complexities of today’s economy, it is more important than ever for companies to have access to the expert guidance and support that we provide.
Whether your business is facing financial challenges, struggling to stay ahead of the competition, or simply looking to take your operations to the next level, our team has the expertise and experience to help you succeed.
Signs of a Distressed Company
Revenue Growth Strategies for Lower Middle Market Private Companies
Revenue is the engine that drives the growth of an enterprise and is vitally important when assessing the health of a business. During the revenue assessment process, we review the following components of revenue:
- People and Culture: Staff and culture aligned to foster intelligent revenue growth.
- Business Plan: A clear plan from industry research defines growth categories.
- Competitive Advantage: Factors that attract customers compared to rivals.
- Target Customer: Identifying the customer group for marketing efforts.
- Marketing and Sales: Linking the 4 P's (product, price, place, promotion) with sales.
- Category Management: Aligning product mix with diversity, geography and seasonal demand.
- Revenue Quality: Determining between good and bad revenue to protect profits.
- Pricing Strategies: Navigating inflation's impact on customer acceptance of higher prices.
- Technology and Data: Leveraging tech, social media, and data for decision-making.
- Competition: Using technology and information to drive revenue, profit, and value creation.
Overall, Parker Revenue Growth Strategies guides businesses to sustainable and strategic revenue growth in the face of market challenges.
Preparation for the Sale of the Company that Maximizes Value
For business owners, frequent inquiries from private equity, competitors, and others about selling the company require careful consideration. Prior to entertaining offers, these steps are crucial:
- Evaluate Exit Options: Understand different exit possibilities.
- Organizational Fit: Ensure the company is well-prepared for a transaction.
- Advance Planning: Create a detailed plan at least 18 months ahead.
- Acknowledge Challenges: Grasp existing company challenges.
- Advisory Team: Build a strong team, (legal, financial and operational experts).
- Value Creation: Enhance company value before selling and develop a sales strategy.
- Chemistry with Buyers: Assess compatibility with potential buyers.
- Capital Strategies: Determine financial plans, e.g., selling, ESOP, earnout.
- Future Plans: Design business, financial, and operational strategies for growth.
- Succession Planning: Define who will lead the company after the sale.
- Personal Stake: Take control of your future, or family may push for change.
- Strategic Exit: Have a well-planned exit strategy.
Given the effort invested in building the company, dedicating time to a successful exit or succession plan is crucial.
Interim Chief Revenue & Restructuring Roles,
Interim CEO and/or COO
The Chief Revenue Officer (CRO) oversees all teams and processes related to revenue generation within an organization. This executive position ensures that the competitive position of the company are aligned around the strong categories of a company to drive revenue opportunities for long-term sales growth and maximizes profitability.
A Chief Restructuring Officer (CRO), on the other hand, considers sales as just one component of the machine that drives revenue. CROs look at goals 18 months or two years into the future and consider what’s happening in the market and what needs to be done now to reach those long-term objectives. To achieve real success with or without a CRO role, organizations need to shift from being reactive to proactive in the face of current changes and externally environmental market forces.
Read more about the rise of interim talent from Korn Ferry.
Board Seats on Privately Owned Companies
Experienced experts on company boards play a vital role in steering growth and success. They provide crucial governance, guiding strategy, performance, and risk management. These experts also convert data into actionable insights, enhancing informed decision-making. Their diverse perspectives contribute to well-rounded strategies, driving innovation and identifying revenue opportunities. With deep industry insights, they help adapt to market changes and foster a culture of improvement. Overall, these experts act as guiding compasses, ensuring the company's direction remains growth-focused and resilient in the face of challenges.
Court-Appointed Federal Receiver
Having a federal receiver at a company's disposal is of foremost importance. These court-appointed officials play a critical role in safeguarding and optimizing a company's assets, operations, and overall value during legal proceedings. Their expertise ensures that businesses undergoing legal challenges have a dedicated and knowledgeable entity overseeing operations, mitigating risks, and preserving value, thereby facilitating a smoother resolution and maintaining the company's stability.
Become Our Next Success Story!
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