Business Turnaround Examples

1. Retail Pharmacy Group

A highly geared business which was previously profitable. Following HSE imposed price changes the company saw a substantial fall in its profits and was unable to meet it’s bank obligations.

Remedial actions taken by BusinessTurnarounds :

• Overheads reduced
• Personnel changes
• Promotions
• Changes to customer offerings / Inventory changes
• Buying practices amended
• Bank debt re-scheduled
• Updated management information systems

Outcome: The business is again trading profitably and meeting its bank obligations.

2. IT Services Company

A significant reduction in turnover resulted in a cashflow crisis and the company was struggling for survival.

Remedial actions taken by Business Turnarounds:

• Overheads reduced
• Organisation structure rationalised
• Additional Working Capital Obtained

Outcome: The business has been downsized and is generating sufficient cash to meet its debt obligations.

3. Services Company

A highly geared business which suffered a substantial reduction in turnover.

Remedial actions taken by Business Turnarounds:

• Asset disposals
• External debt reduced and rescheduled
• Organisation structure rationalised
• Headcount reduction
• Overhead reduction

Outcome: Significant downsizing was carried out and the business continues to trade and meet its debt obligations.

4. Manufacturing /services business

This business was both b2b and b2c and while profitable they were about to run of cash.

Remedial actions taken by Business Turnarounds:

• Section closed
• Negotiated instalment arrangements with creditors
• Implemented changes to the structure of the organization
• Overheads reduced
• Initiated marketing programme
• Introduced cash monitoring and planning tools

Outcome: The company continues to trade profitably and has ample working capital to fund it’s activities.