Restructuring

Cash management should become a core competency and managed by a specialist; this goes beyond the 13-week cash flow forecasting. Orderly ordering, spend and standardization of accounts payable; careful management of inventory; and improving accounts receivable for cash collection opportunities culture should be careful monitored by KPI’s and incentivized by realignment of management incentives (e.g., salesmen for cash collections rather than on orders).

Financial restructuring should encompass the honest and intense appraisal of valuation and the debt/equity structure but also the operating processes and value delivery culture that leads to reduction in debt and cash flow.

Managing and regular communication with energy of “right first time” changes in vision, culture, structure and goals and then performance against goals are fundamental to success and trust which stakeholders to organizations. Changes and perceived uncertainties will be quickly judged and rebelled against via irrational actions if deemed poor leading to loss of employees and customers.

Crisis cash management requires deep insights to the reporting and forecasting process that is fundamental to a successful turnaround. Accurate and cleaned up data, active and near real-time communication of key performance indicators via dashboards is necessary to make informed course-corrections to strengthen and enhance strategies and actions.

To quickly boost profitability and cash flow, streamline operations and maximize returns, evaluate all aspects of a business to determine the appropriateness of cost allotted to each area and the ROI of each expense decision for the company. We recommend a ‘zero’ based budgeting approach to costs, customers/ products, locations and procedures/ tasks.