- within Insolvency/Bankruptcy/Re-Structuring, Real Estate and Construction, Food, Drugs, Healthcare and Life Sciences topic(s)
- with Finance and Tax Executives
- in Australia
- with readers working within the Accounting & Consultancy, Banking & Credit and Business & Consumer Services industries
The presentation takes a proactive approach to identifying early
warning signs of financial and operational stress in businesses,
rather than solely focusing on traditional indicators of
insolvency. The key areas of discussion include:
Engage timing: The importance of timely intervention in addressing
financial and operational stress.
The Business Health Curve: A framework for understanding the progression of a business's health and identifying potential areas of concern.
Concept of Diminishing Optionality: The idea that as a business's financial and operational health declines, its options for recovery and turnaround also decrease.
Early Warning Signs: The presentation highlights four key areas
to monitor for early warning signs, including:
- Business Objectives: Are the company's goals and objectives
clear and achievable?
- Customer Value Proposition: Is the business still delivering
value to its customers and is it well understood?
- Resource constraints: Are there limitations on the company's
resources (people, platform, processes)?
- Borrower Conduct: Are there any red flags in the company's
behaviour?
Approach: The presentation compares two approaches to addressing
financial and operational stress:
- Traditional vs Value Creation: The difference between a
traditional, reactive approach to turnaround and a more proactive,
value-creation-focused approach.
- The Turnaround Process: A step-by-step guide to implementing a
successful turnaround strategy.
The presentation aims to provide practical, actionable advice for
businesses and stakeholders looking to identify and address
potential issues before they become major problems.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
