Fresh eye and objectivity is key to success

Cyclical financial markets and extreme volatility have combined to create a climate where no business can take economic stability for granted, even though things are improving.  Many businesses have turned to downsizing to improve their economic health but this has taken its toll by robbing many businesses of management talents. Thus the ranks of managers groomed to assume top positions have been thinned dramatically reducing the ability to provide strong leadership just at a time when recovery is on its way.

A professional business adviser can enter a business with a fresh eye and complete objectivity in order to spot problems and create new solutions that may not be visible to the existing management team.  There is absolutely no political agenda to bias the decision-making process thus allowing some unpopular but vital steps leading to future success.

Commenting, Gerald Irwin of Sutton Coldfield-based Licensed Insolvency Practitioners and Business Advisers said, “Viewed somewhat simplistically restructuring a business is an exercise focused on the balance sheet, the current cash-generating capability, valuation and the debt-carrying capacity of a business.  The main objective is either to turnaround the business or effecting a forced reduction or conversion of debt levels to match cash-generating capabilities.  Using the same simplistic view will focus initially on cash flow, operational effectiveness of systems, pricing, market strategies and the depth of financial distress.  The objective in this particular scenario is to effect significant increase in cash flow through cost reduction, improved working capital management and realisation of investment.”

Most advisory work involves restructuring leadership to dramatically reshape the business for improved performance and persuading all parties to execute painful decisions. Indeed, the most difficult part of this strategy is not the formulation but gaining acceptance of it.

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About the author

Gerald Irwin

Gerald Irwin is founder and director of Sutton Coldfield-based licensed insolvency practitioners and business advisers, Irwin Insolvency. He specialises in corporate recovery, insolvency,
 rescue and turnaround.