We assist small to medium size enterprises (SMEs) and family owned businesses. The underpinning objective of our financial turnaround practitioners is to drive a more prosperous future by:
- providing pathways for struggling businesses and assisting in times of crisis by discussing strategies to avoid failure;
- helping businesses embrace risk through calculated decisions, financing and investment strategies; and
- accelerating the next generation of innovative and high performing Australian businesses.
Restructuring, Turnaround and Renewal
Our Financial Turnaround Practitioners identify root causes of problems that may not be visible to insiders or their existing advisors. There are multiple ways in which a turnaround practitioner can be engaged, for example:
- short notice appointment as interim manager (or interim c-level positions) in times of crisis;
- advisers for informal workouts, recapitalisation and debt negotiations or for safe harbour assessment implementation;
- acting as a ‘sounding board’ for ongoing risk management advice where management have a strong ‘risk appetite’ and growth ambitions (including non-executive board appointments).
Our financial turnaround practitioners enter with a fresh perspective and act with complete objectivity and integrity.
Like doctors in an emergency room, our financial turnaround practitioners make critical decisions and move quickly to staunch the financial bleeding and give patients the best chance for revival and recovery. Leadership and change management are fundamental in achieving a successful turnaround.
As certified members of the Turnaround Management Association, our practitioners are qualified and experienced in strategic management, accounting & law for turnaround.
Upon engagement, solutions are implemented immediately to put in place control measures.
Financial Turnaround Practitioners tailor advice such that it is given from a holistic and strategic viewpoint and encompasses multiple potential dimensions of risk.
Harnessing Industry Experience
Tapping into management’s industry experience and combining this with an external industry expert can often be the ideal solution for building turnaround strategies.
So often, when companies are facing a financial crisis, it leads to liquidation or voluntary administration, and the opportunities for the business to continue are lost. Consequently, your assets disappear down the liquidation or voluntary administration ‘drain’. The company’s money evaporates in the form of liquidator’s fees, ATO penalties or legal claims by aggressive creditors.
TurnAbout AU is not a liquidation firm. Nor are we ‘pre-insolvency’ advisors. However, we do work act for you – the directors or business owners. We do not act for the ATO or the bank or other creditors. We have your solution and we are here to help you and to guide you. Use our knowledge to put an end to your financial crisis so you can move on without the stress and without all the debt.
Whilst a turnaround practitioner’s experience within a particular industry is important, their experience in making effective and calculated decisions in crisis situations is absolutely paramount.
Shifting Landscape – Embracing a Rescue Culture
The Government has long sought bring about a system to facilitate successful restructures outside of formal insolvency. There has been a strong push towards a change in policy by professional bodies, professionals and the business community for many years.
- The earlier help is sought, the more options that are available to help rescue, turnaround or preserve the value of a business. However, the worst thing that can be done is to approach an unqualified, inexperienced and/or uninsured advisor.
- Unfortunately there are dodgy ‘pre-insolvency’ advisors that prey on distressed individuals and often recommend illegal business phoenixing. In addition to their ‘so-called advice’ resulting in dire consequences, the regulators are in the midst of a crackdown to eliminate these advisors and their professional accomplices.
- However, the doorway is wide open for legitimate business rescue. Directors, officers and owners may now contemplate rescue early in the business cycle (before the crisis becomes a cash flow or compliance issue).
Business rescue is a legitimate use of the corporate form and we will work with those in this category to provide education and advice.
Brett Martin, Assistant Commissioner Tax Evasion & Crime, ATO (AICM Magazine, December 2017).
At the Forefront of Change in Australia
Eddie Griffith has been instrumental in the advocacy of of change in business rescue in Australia; including:
- assisting senior policy advisors at the Australian Institute of Company Directors (AICD) over the introduction of the Safe Harbour legislation and it’s subsequent 2 year review;
- playing a key role in raising awareness of mental health in the small business sector with the Institute of Public Accountants; and
- contributing to research for a landmark study of Voluntary Administration in Australia (the most significant research project to date being undertaken by Professor Jason Harris of Sydney University Law School and Adelaide University PhD.)
Remember that cashflow difficulties, financial woes and resultant insolvency are the symptoms of an underlying problem – engage a Turnaround Practitioner early to help treat the root cause and maximise the chances of preserving the business’s goodwill, asset values and key employees.