The Restructuring Period of a Business Turnaround - The Turnaround Team

p>The primary approach during this restructuring periodyour accounting department may deserve some of
will be to develop a plan that will identify the corethe blame for your current predicament, and they may
business revenue streams that you can focus on tobe motivated to cover this up. This would clearly be an
get your company through this difficult period.internal conflict.
Your plan will pare back all unnecessary operationsYou can include your controller or your C-level
and leave only the core positive cash flow functions ofaccounting manager on your team, but it is best that
the business. Then you will build back up to a stablethe external expertise is available and you will not be
position.solely reliant on someone who may be partially
Create a Core turnaround Teamresponsible for the problems causing the need for the
Although you probably have the skills to implement aturnaround in the first place.
successful turnaround yourself, it is a good idea toThe other reason you should seriously consider outside
seek some amount of help. This help can include anyhelp is because it is likely that you do not have a
of the following professionals:certified accountant working within your organization, or
- Turnaround expertone with experience working on a company
- Certified Public Accountantturnaround, or an attorney familiar with the unique
- Attorneyissues associated with the turnaround process.
Although you may have accounting or legal expertiseI am not suggesting that you hire all three individuals.
within your organization, I recommend that youYou may be able to accomplish your goals with an
consider hiring experts who are external to yourattorney who is also a CPA and has experience with
organization.turnarounds. Whatever works for your particular
This will eliminate any conflicts your own personnelsituation.
may have with the turnaround process. For example,