In March 2022, Navigator Consulting implemented an online training programme for a leading Romanian liquidation and restructuring specialist.
The objective of the training was to focus on practical methodological tools and methods for the diagnostic analysis and turnaround management. This is fundamentally different from a classic liquidation situation in that the company in question still has a chance to be saved.
Some of the topics included:
Formal and Informal Objectives of TAM Engagements
The structure and objectives of a Turn-Around Management (TAM) project differ widely depending on the degree of financial emergency affecting the company, and the objectives of its stakeholders. Lenders are typically concerned with debt recovery. Governments are more concerned with corporate survival and continuity of employment. Owners are concerned with survival. One of the first things a consultant needs to understand is how to structure a TAM engagement based on formal and informal objectives.
Structuring & Contracting a TAM Engagement
Five phases of a Turn-Around Management Project:
Diagnosis
First 100 Days / Restructuring
Stabilisation
Recovery
Growth
Topics covered included:
Setting clear and measurable objectives and KPIs
Engagement duration and timeline
Consulting fees versus success fees
Team members needed
Typical steps taken in a 12-month engagement
Controlling and reporting
Hiring and firing staff
Business process restructuring scenarios
Liquidation scenarios
Break-up and sell scenarios
Corporate governance during TAM versus normal corporate activity
Budgeting and Organising TAM Engagements
Fees and Costs
Success Fees
Financial and Project Risk Analysis
Principles of Activities-Based Project Costing (ABC)
Turn-Around Management Risks
Outline of risks withing engagements and risk mitigation measures
Dealing with scenarios such as no executive support; executive resistance; faulty information; improper accounts; staff resistance; etc.
Discussion and Closing
Short Case studies of each TAM Phase in practice were provided.
For further information on our consultancy services for turn around management, company restructuring and growth, please contact us.