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 plan’s 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.