The Turnaround Plan
The turnaround plan presents our findings and recommended action typically in outline form.† Time is of the essence.† We do not wait to issue formal reports before recommending and/or taking action.† In a severe liquidity crisis, the action plan may be preparing and executing a short-term cash flow plan.
The planís objectives, depending upon severity, are as follows:
∑ First, stop the bleeding (cash outflow).
∑ Second, maximize short-term cash resources.
∑ Third, fix the causes of the bleeding; focus on:
∑ The core segments and products.
∑ The problems with the highest turnaround leverage.
∑ Fourth, restructure the debt/capital.†