If the executive team gets stuck in any of the five stages of the “process of depression” during the turnaround management, it is likely to lead to the bankruptcy of the firm. Severe troubles of a firm are often paralleled by a situation of rapid change, where the dynamics of (involuntary) transformation keep accelerating and exceed the […]
It is fair to say, turnaround specialists, are often onboarded in the very last moment of distress situations. For firms, this can be dramatic, as the onboarding of a turnaround professional increases chances for going concern from (only) 12.5% to more than 90%. Reasons are linked to the degree of the ability of an organization […]
To secure going concern for a firm, a turnaround professional should on-board before the final struggle for economic survival has begun. If waiting too long, going concern is at stake and it is more promising to go to Las Vegas, to preserve investments. The suck of the downward spiral Root causes for distress situations putting going concern at stake […]
Steve Tobak from CBS MoneyWatch identifies three phases for a turnaround, in a situation of rapid change. The most important initial starting point of claiming control over the turnaround process is forgotten. When on-boarded, stopping the firm’s downward trend is critical and the core objective of the turnaround CEO. This aims for multiple stakeholders, including investors, […]
As a rule of thumb, a turnaround is considered something in the region of 12 for up to 30 months. Due to many uncertainties, the timeframe is varying. The objective of the turnaround is to reach break-even of the firm (again), or for start-up and growth firms, getting to the verge of scalability. Three milestones mark […]
10 facts on turnaround situations (US data, research by TMS – Turnaround Management Society). 172 businesses file for bankruptcy in the US per day, this translates into 320’000 jobs lost every year due to distress situations of firms. Many turnarounds could resolve distress situations and lead to success if understanding and managing such situations of rapid change well. […]
In autumn 2014 another promising and emergent Swiss Start-up filed for bankruptcy. Sadly, this is rather the rule than the exception. As out of every 11 serious ideas, only one succeeds. This delivers an attrition rate of approximately 90%. From the investor’s perspective the numbers are even more frustrating, as “survival” is something significant different […]
Digital markets are ruled by a very few players. It will be difficult for other market participants, to keep competitive.
The majority of start ups fails for precedented and avoidable mistakes. Though innovation needs a degree of freedom to evolve, the discipline, applied by the venture capitalist’s whip can help the management, to focus on the right spot. Though uncomfortable, this might be critical to channel creativity and align with commercial success and ROI. […]
