Steering a turnaround plan is a delicate exercise. This responsibility must be entrusted to a specialist in corporate restructuring, who must demonstrate foresight, determination and structure. Interim Management is the ideal solution!

When a company operates in a competitive market, its environment offers many opportunities, but also entails serious risks. An economic or operational error can precipitate it into a dangerous situation. Once this stage has been reached, only a turnaround plan can restore equilibrium by identifying business opportunities through marketing, innovation or the conquest of new markets.

The implementation of a turnaround plan follows a precise procedure. The first step is to establish a diagnosis, identifying the company’s strengths and weaknesses, as well as the opportunities and threats in the sector:

• Cash flow is the first indicator of a company’s condition: cash inflows and outflows are analyzed in detail;
• The company’s organization is studied in depth.

Interim Management offers the perfect solution for this exercise. Specialists in corporate restructuring, these professionals quickly establish the diagnosis and propose appropriate action plans. With all the information at their disposal, managers can then validate the turnaround plan.

By monitoring key indicators, the Transition Manager puts in place effective mechanisms to improve cash flow. He or she is responsible for recovering the money owed and securing it. There is a range of tools available to achieve this: discounting, factoring, dailly, credit insurance… He or she also engages in discussions with suppliers and banks to renegotiate debt.

Restructuring a company involves some tough decisions. Reducing operating costs, and therefore the wage bill, is a thorny issue. Before laying off employees with valuable know-how, temporary measures such as signing flexicurity or competitiveness agreements, or resorting to short-time working, should be preferred. The main thing is to avoid mortgaging the future, and to be able to reactivate the business when the time comes.

Over a period of 6 to 18 months, the interim manager follows a turnaround plan, the progress of which is measured in the light of key indicators. At the end of this period, the company is sustainable. The new procedures and checkpoints enable him to take back the reins of his company.