Question: When do I need a Turn Around Specialist?
Answer: The signs start with:
- Sales decrease is more than a "trend" or the industry average.
- Accounts Payable is reaching Accounts Receivable.
- Customer satisfaction and quality are decreasing.
- Lost focus on core business.
- Debt Level and Line of Credit are a daily concern.
- Selling, General and Administrative as a percentage of Sales is no longer showing improvement.
Executives who encounter corporate distress often go through the same emotional stages as dying people: denial, anger, bargaining, depression, and finally acceptance.
The last stage is when most corporations hire turnaround professionals, unless they are forced to do so earlier by a lender, equity holder, or bankruptcy court.
Corporate managers who recognize and acknowledge the signs of trouble and get help in the earlier stages have a much better chance of a successful recovery for their corporation. Often too little, too late. In what could have been an avoidable situation.