Turnaround and Restructuring
Expert strategies to revitalize distressed businesses and maximize value through effective restructuring
Comprehensive Turnaround Solutions
At Seventh Economy, we specialize in helping businesses navigate through financial distress and operational challenges. Our turnaround management services provide strategic guidance and hands-on support to stabilize operations, improve performance, and create sustainable value.
Whether your business is facing cash flow problems, operational inefficiencies, or market challenges, our experienced team delivers tailored solutions to address your specific situation and guide your organization toward recovery and renewed growth.
Financial Restructuring
Comprehensive solutions to address financial distress, improve liquidity, and create a sustainable capital structure.
Operational Improvement
Strategic initiatives to enhance operational efficiency, reduce costs, and improve overall business performance.
Stakeholder Management
Expert negotiation and communication strategies to align stakeholder interests and secure necessary support.
Strategic Repositioning
Guidance on market repositioning, business model innovation, and strategic planning for sustainable growth.
The Turnaround Process
Our structured approach to business turnaround focuses on rapid stabilization, strategic realignment, and sustainable recovery.
1. Situation Assessment
We begin with a comprehensive diagnostic of your business's financial position, operational performance, and market dynamics. This assessment identifies the root causes of distress and establishes a baseline for measuring improvement. Our team analyzes cash flow, working capital, operational metrics, and competitive positioning to develop a clear understanding of the challenges and opportunities.
2. Stabilization
The immediate focus is on stabilizing the business by addressing critical issues that threaten short-term viability. This typically includes implementing cash conservation measures, negotiating with creditors, identifying quick-win operational improvements, and establishing crisis management protocols. Our team works to create breathing room that allows for the development and implementation of more comprehensive turnaround strategies.
3. Turnaround Planning
Based on the situation assessment, we develop a comprehensive turnaround plan that addresses financial restructuring, operational improvements, organizational changes, and strategic repositioning. The plan includes specific initiatives, timelines, resource requirements, and performance metrics. We work closely with management to ensure the plan is realistic, actionable, and aligned with stakeholder expectations.
4. Implementation
We support the execution of the turnaround plan through hands-on implementation assistance, project management, and regular progress monitoring. Our team works alongside your management to drive change, overcome resistance, and adapt the plan as needed based on results and changing circumstances. We focus on both quick wins to build momentum and structural changes to address root causes.
5. Monitoring and Refinement
We establish robust monitoring systems to track performance against key metrics and milestones. Regular reviews allow for timely identification of issues and opportunities for refinement. As the business stabilizes, the focus shifts from crisis management to sustainable improvement and growth. We work with management to institutionalize new processes and capabilities to prevent recurrence of distress.
Financial Restructuring Expertise
Our financial restructuring services help businesses address financial distress and create a sustainable capital structure.
Cash Flow Management
- 13-week cash flow forecasting and monitoring
- Working capital optimization strategies
- Cash conservation and prioritization frameworks
- Liquidity enhancement initiatives
Debt Restructuring
- Creditor negotiation strategies
- Debt refinancing and consolidation
- Covenant renegotiation and compliance
- Debt-to-equity conversions
Capital Structure Optimization
- Balance sheet restructuring
- New capital raising strategies
- Divestiture of non-core assets
- Strategic investor identification
Financial Planning
- Revised business plans and financial projections
- Scenario analysis and stress testing
- Cost structure rationalization
- Financial KPI development and tracking
Operational Restructuring Strategies
Our operational restructuring services focus on improving efficiency, reducing costs, and enhancing overall business performance.
Performance Improvement
We identify and implement operational improvements to enhance efficiency, reduce costs, and improve overall business performance. Our approach focuses on both quick wins to generate immediate results and structural changes to create sustainable improvements.
Strategic Repositioning
We help businesses reassess their market position, business model, and strategic direction to create a foundation for sustainable growth. This includes portfolio optimization, market focus, and competitive differentiation strategies.
Organizational Transformation
We support businesses in aligning their organizational structure, capabilities, and culture with their turnaround strategy. This includes leadership development, change management, and capability building.
Stakeholder Management & Creditor Negotiations
Effective stakeholder management is critical to successful turnarounds. We help businesses navigate complex stakeholder dynamics and negotiate favorable outcomes.
Creditor Negotiation Strategies
We develop and execute strategies for negotiating with creditors to achieve sustainable debt structures. Our approach focuses on creating win-win solutions that address creditor concerns while providing the business with necessary financial flexibility.
- Debt restructuring and refinancing
- Payment term renegotiation
- Covenant modifications
- Debt-to-equity conversions
Stakeholder Communication
We help businesses develop and implement effective communication strategies to maintain stakeholder confidence during turnaround situations. Clear, consistent, and transparent communication is essential for maintaining support and managing expectations.
- Stakeholder mapping and prioritization
- Communication planning and execution
- Progress reporting frameworks
- Crisis communication management
Key Stakeholder Considerations
Lenders & Creditors
- • Financial performance visibility
- • Realistic repayment plans
- • Collateral protection
- • Compliance with agreements
Employees & Management
- • Job security concerns
- • Organizational changes
- • Performance expectations
- • Retention of key talent
Customers & Suppliers
- • Service/delivery continuity
- • Payment terms and conditions
- • Quality and reliability
- • Long-term relationship viability
Maximizing Value During Restructuring
Our approach focuses on preserving and enhancing business value throughout the turnaround process.
Rapid Stabilization
Quick action to address immediate threats to business viability, preserve cash, and maintain operational continuity.
Strategic Focus
Concentration on core business activities that drive profitability and competitive advantage while divesting non-core assets and operations that drain resources.
Capability Building
Development of organizational capabilities, systems, and processes that support sustainable performance improvement.
Value Preservation Strategies
Protecting Key Assets
Identifying and safeguarding critical assets including intellectual property, customer relationships, key talent, and strategic infrastructure.
Maintaining Business Continuity
Ensuring uninterrupted operations and customer service during restructuring to preserve revenue streams and market position.
Optimizing Resource Allocation
Directing limited resources to activities with the highest return on investment and strategic importance.
Retaining Key Stakeholders
Implementing strategies to retain critical customers, suppliers, employees, and investors throughout the turnaround process.
Turnaround Success Stories
Real-world examples of how our turnaround strategies have helped businesses recover and thrive.
Manufacturing Company Revitalization
Industry: Industrial Manufacturing | Revenue: $50M
A mid-sized manufacturing company facing declining margins, operational inefficiencies, and liquidity challenges achieved a comprehensive turnaround through strategic restructuring.
Challenges
- • 30% decline in EBITDA over 2 years
- • Significant covenant breaches
- • Operational inefficiencies
- • Outdated product portfolio
Results
- • 40% EBITDA improvement in 12 months
- • Successful debt restructuring
- • 15% reduction in operating costs
- • Renewed growth in core markets
Retail Chain Transformation
Industry: Specialty Retail | Revenue: $75M
A specialty retail chain with 50+ locations facing changing consumer preferences, e-commerce disruption, and unsustainable cost structure achieved a successful turnaround.
Challenges
- • 20% same-store sales decline
- • Excessive lease obligations
- • Limited digital presence
- • Inventory management issues
Results
- • Successful restructuring of 30+ leases
- • 25% increase in e-commerce revenue
- • Optimized store footprint
- • Return to profitability within 18 months
Ready to Transform Your Business?
Our turnaround experts are ready to help you navigate challenges and create a path to sustainable success.