 |
| Image via Marketshape.info |
To encapsulate the purpose behind the functions and the mechanism of turnaround companies, the concept of the term ‘turnaround’ needs to be understood first. Usually a company undergoes a turnaround when a company is facing managerial and financial crises for example increased debt, inability to cover taxes, increased expenses, low sales turnover, decreased profits, low employee motivation, lack of team-spirit among company management, and deteriorating client-company relations. Turning around is a step, mostly an intricate one, taken by the company in order to transform and refocus its managerial and financial aspects of the business into a better and profitable one.
There
are various prominent cases present on companies that effectively
turned around, McDonald’s and AOL being one of the most well-known.
After the merger between Time Warner and AOL, AOL faced adverse impact
on their revenues and profitability. The CEOs of Time Warner and AOL
collectively adopted various strategies to turnaround the company like
making available free content on the AOL portal to attract more online
visitors which resultantly increased advertising revenues. Additionally,
McDonald’s witnessed a drop in their sales and overall profitability
due to their tarnished corporate image and deteriorating quality of
operations. In 2003, the company announced turnaround plans and by 2004
they were observing proofs of a successful turnaround of increased
profits.
In
order to accomplish a successful turnaround, it is necessary to get
involved with the right people. There are various service providers
which provide step by step assistance in turning around companies in
financial and/or managerial crises. The main purpose of existence of
such service providers is to help troubled companies effectively deal
with their creditors, improve the company’s balance sheet, reduce
business debt and resultantly avoid bankruptcy or liquidation.
American Corporate Turnaround
is a boutique service provider specializing in accounts payable
restructuring. Accounts payable restructuring makes a company more
fundable. This service of Debt Restructuring helps
companies improve cash flow and creating a financially healthy
foundation for the business to strive.
The service providers like American Corporate Turnaround take up the responsibility of directly dealing with the creditors, analyzing the financial s and developing a budget to service old debt.
Thus, there are numerous benefits of associating with such service
providers. Some of them include restructuring of payment modes into more
flexible and affordable system, acquiring more time to effectively run
the business instead of rushing into bankruptcy, no public record or
humiliation, improved financial health of company through reduction in
loans but increase in capital, etc. Moreover, most services which offer
to facilitate company turnarounds also provide free consultation to the
troubled companies. With existence of such a facility and easy
availability of professional assistance and help, even small and medium
companies should not feel distraught in times of managerial or financial
crises.
