Turnaround management: effectively stabilizing and realigning companies

What is turnaround management?

Turnaround management refers to the structured process by which a company overcomes a crisis that threatens its existence and is steered back onto a sustainable growth path. The term "turnaround" aptly describes what the aim is: to bring about a change of direction before it is too late.

A turnaround process typically comprises three phases:

1. Stabilization: securing liquidity, establishing the ability to act, limiting immediate risks.
2. Diagnosis & Strategy: Understanding the causes of the crisis - not just the symptoms. Building on this, develop a sustainable strategy.
3. Implementation & Realignment: Consistently implementing the necessary structural, operational or financial measures and permanently repositioning the company.

Advice from wibas: What does a turnaround manager do?

A turnaround manager assumes a central management role in a corporate crisis. He analyzes the situation objectively, develops realistic options for action together with the management level and ensures their consistent implementation.

In concrete terms, this means

• Quick assessment of the situation: Where does the company really stand? Which risks are immediate, which are medium-term?
• Stakeholder management: Creditors, investors, employees and customers must be addressed, informed and involved in different ways.
• Management of measures: cost reduction, process optimization, portfolio streamlining, securing financing - all in close coordination and with a clear schedule.
• Cultural leadership: A crisis creates uncertainty. A good turnaround manager also leads the company through this phase on a human level.

A turnaround manager not only brings expertise, but also the willingness and ability to act quickly in confusing situations - and to speak uncomfortable truths in the process.

Reasons for a turnaround strategy

Crises rarely announce themselves loudly. They are often gradual developments - falling margins, growing debts, a strategy that no longer fits with market reality. If these signals are recognized too late or ignored, the scope for action narrows rapidly.

A turnaround strategy is crucial for several reasons:

• Orientation in a crisis: It creates clarity about goals, priorities and responsibilities - when everything seems urgent at the same time.
• Confidence among stakeholders: Creditors, banks and investors want to see that the management has a plan - and can implement it.
• Basis for refurbishment measures: Whether IDW S6 expert opinion, StaRUG procedure or Restructuring plan: Without a sound strategy, it is not possible to create reliable restructuring documents.

Our support in turnaround management

No two turnarounds are the same. Depending on the initial situation - how far the crisis has progressed, what resources are still available and which stakeholders need to be involved - different instruments are used. wibas supports you in both central fields of action:

Refurbishment and Restructuring.

While reorganization is about restoring financial stability and securing the company in the short term, restructuring aims to strategically realign business models, processes and structures. In both cases, we support companies with a structured, practical approach - from in-depth analysis and the development of viable concepts through to consistent implementation.

Our support for your turnaround

If solvency is at risk or formal proceedings are imminent, you need a solid foundation quickly - legally, financially and strategically.

Our support for your restructuring

Once the acute crisis has been stabilized, the actual restructuring work begins. The aim here is to position the company in such a way that the crisis does not return.

Characteristics of a successful turnaround plan?

A successful turnaround plan is characterized by the following features:

• Realism: It is based on reliable assumptions - not wishful thinking. The desired results must be achievable, even under difficult conditions.
• Clear prioritization: Not everything can be tackled at the same time. A good plan concentrates the available resources on the most effective levers.
• Measurable milestones: Progress must be recognizable - for the management level, but also for external stakeholders such as banks or investors.
• Feasibility: Measures must match the actual capacity and culture of the company. A plan that is not implemented has no value.
• Consistent monitoring: The plan is regularly reviewed and adjusted if necessary - turnarounds rarely go exactly according to plan.