Recovery & Turnaround Solutions
Quigley & Co has significant expertise in advising on liquidity and/or profitability problems and helping directors and management to develop remedial plans to resuscitate a distressed company to financial health.
Unfortunately, too often, directors delay seeking specialist advice because their natural survival tendency results in the adoption of an optimistic view that company’s circumstances will improve without the need for external advice.
In order to maximise the opportunities to resuscitate a financially distressed company it is important that directors acknowledge the signs of distress at an early stage and promptly seek specialist advice, before it is too late to implement turnaround plans to restore the business to health and to avoid the necessity to appoint a voluntary administrator.
OUR APPROACH
Our approach to working with and supporting directors and management to resuscitate a company in financial difficulty involves:
- Performing an independent assessment of the company’s financial position.
- Determining the underlying causes of the company’s liquidity and/or profitability problems.
- Evaluating the reliability and accuracy of the company’s management information and financial reporting systems, including its costing system.
- Identifying opportunities for improvement of profitability and cash flow generation including ways to reduce costs.
- Considering opportunities to rationalise the business (eg discontinuance of loss-making activities, products or services; sale of surplus assets)
- Developing remedial action plans to restore the company’s business to health.
- Assessing whether revenue and expense budgets and cash flow forecasts embodying remedial plans reasonably reflect future business performance.
- Assistance with implementing remedial action plans to restore the business to health.
- Monitoring the progress and success of the planned remedial action.
- Assistance in liaising with lenders, suppliers and other creditors during the recovery period.