Turnaround

Turnaround

We describe turnaround as the sustainable recovery of a company that has been underperforming. Our experts have helped small businesses through to large enterprise companies to overcome their challenges, improving value and performance.

Make your business stronger and more resilient

0 %
success rate in securing more time and support from financiers
1 +
turnarounds completed
( 86% success rate )
1
turnaround
awards won

Why our business turnaround solutions are successful ?

At Vantage, we are corporate turnaround specialists and understand that a successful turnaround requires:

  • Rapid action to stabilise the business
  • Proactive management of key stakeholders to secure/maintain support
  • A robust strategic plan
  • Access to fresh capital
  • Relentless execution

We take pride in our ability to successfully implement the above, while always fulfilling our commitment to taking the time to understand what matters most to you and your business, resulting in a rapid improvement in cash flow and earnings, providing you with peace of mind and certainty of outcome.​​

We don’t just present you with a robust strategy. We work with you every step of the way, hands-on and supporting every aspect of the turnaround process. ​

We take the pressure off the executive team and take care of the restructuring initiatives allowing management to focus on the core business.

MICHAEL FINGLAND

MANAGING DIRECTOR, VANTAGE PERFORMANCE

Providing Safe Harbour to businesses in distress

Our Safe Harbour solution plays an important role in the turnaround process for businesses in distress.

Safe Harbour protects company directors who pursue turnaround efforts from breaching insolvent trading. Moreover, Vantage’s turnaround management expertise and in-depth understanding of Safe Harbour law provide breathing space and peace of mind to directors in times of distress.

We have a tenacious approach and we are fully committed to getting businesses back on track. Whatever the situation, we believe there’s always a way that the business can be improved.

Our Approach

articles

What are your 1 to 2 big changes in strategy?

What are your 1 to 2 big changes in strategy?

  Successful corporate turnaround strategies typically involve identifying and making 1 to 2 major changes to the way a company…

The Importance of a Chief Restructuring Officer

The Importance of a Chief Restructuring Officer

  As a business grows, it becomes necessary to hire experts who can oversee various departments such as finance and…

The First Step in Transforming Your Business for Success

The First Step in Transforming Your Business for Success

Today, businesses face a daunting landscape of ever-evolving conditions presenting new challenges. With the business failure rate reaching a 15-year…

Managing Stress for Effective Turnarounds

Managing Stress for Effective Turnarounds

Stress management is crucial in any challenging situation, but it becomes even more critical in a turnaround situation. A turnaround…

Building Trust to Fast-Track a Turnaround

Building Trust to Fast-Track a Turnaround

Building trust is crucial in any situation where people are asked to work together towards a common goal, but it…

The Art of Developing a Cash Runway in a Turnaround

The Art of Developing a Cash Runway in a Turnaround

Developing a cash runway is crucial in a turnaround because it provides the necessary time and resources to implement a…

What are your 1 to 2 big changes in strategy?

  Successful corporate turnaround strategies typically involve identifying and making 1 to 2 major changes

The Importance of a Chief Restructuring Officer

  As a business grows, it becomes necessary to hire experts who can oversee various

The First Step in Transforming Your Business for Success

Today, businesses face a daunting landscape of ever-evolving conditions presenting new challenges. With the business

Managing Stress for Effective Turnarounds

Stress management is crucial in any challenging situation, but it becomes even more critical in

Building Trust to Fast-Track a Turnaround

Building trust is crucial in any situation where people are asked to work together towards

The Art of Developing a Cash Runway in a Turnaround

Developing a cash runway is crucial in a turnaround because it provides the necessary time

WHAT OUR CLIENTS SAY

We engaged the Vantage team to provide a strategic review and implementation plan to assist us reposition our business after a challenging period. The team’s knowledge, commitment and professionalism were well regarded by us and this was instrumental in achieving our goals for the review and our business going forward. The credibility, discipline and momentum provided by the team was everything we hoped for and I am very happy to recommend their work.

Stephen Barnard CEO, Nationwide Hire

When times got tough, every cent counted and the value we’ve received from Vantage has exceeded all expectations. The timeliness, relevancy and worth of the advice provided by the Vantage team has been fantastic. They’re also not scared to roll up their sleeves and muck-in to get the job done when needed. The decision to call Vantage was the best commercial decision I’ve ever made.

Scott Etherington CEO, Bevco (Orchy and Macquarie Valley Juice)

Michael/Vantage and I have worked on a number of matters together for mutual clients. I have always found them to have a detailed understanding of the key drivers that impact on the ultimate outcome, and an unwavering focus on obtaining the best possible result for his clients.

Luke Mountford Partner, Hopgood Ganim Lawyers

After facing a very difficult climate for two years, it was a great relief to bring the expertise of Vantage Performance to resolving Promim’s problems. They were able to isolate the viable options for restructuring the business and were very helpful in providing interim strategies to deal with suppliers and creditors while the restructuring process was worked through. I wish I had been introduced to the Vantage team a year earlier. They would have saved me a lot of sleepless nights.

Garry Pennell Managing Director, Promim

A health check and full company assessment via the Vantage team is liberating and can bring the changes needed to take a business to the next level. Engaging Vantage has given us fantastic input and assistance to our company as we plot our future. Mark Garrahy, Director, Workout World (now part of Rebel Sport)

Mark Garrahy Director, Workout World (now owned by Rebel Sport)

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Change Management For Small Business – Turnaround Isn’t Rocket Science

Change Management For Small Business – Turnaround Isn’t Rocket Science

Performance improvement is the same in principal for all business – it’s just less complicated for SMEs.

Selling a loss-making business to a competitor, changing the channel to market, acquiring a competitor or moving into a foreign market are all types of strategic decisions that large business has to make.

Performance improvement in the SME sector usually involves decisions of much less difficulty and risk.

When small business struggles or underperforms expectations, it’s a good idea to go back and remind yourself what it was that made the business successful in the first place. The issue with small business is that, in the beginning the owner has to be flexible – they have to be led by the market or customer and they have to be responsive. Over time, the business becomes practically unrecognisable from that proposed in the original business plan.

Change and responsiveness isn’t a bad thing (indeed it’s a good thing). It’s just that as a business owner, you must step back at regular intervals and ensure you are achieving what you set out to – creating value and making an acceptable profit.

A clear-headed review might make you squeamish! You might find loss-making products, unnecessary overheads and unproductive business or administrative practices that have given rise to an unwieldy, less profitable enterprise.

Performance improvement is about being able to see the business for how it is, making the obvious (almost common sense) commercial decisions consistently and constantly looking for marginal profit improvement.

First steps in SME performance improvement

“If you can’t measure it, you can’t manage it” – so take time to play around in the accounting system. MYOB, Quick Books and the range of small business software packages are easy to use.  Look firstly at the last six months’ profit and loss account and look for the gross margin by month (if you can download this to a spreadsheet, great).

Divide the gross margin by the sales and look at the GM% for each month. Does the GM % trend up or down? As a business manager, you may have an idea why but you might not appreciate the financial impact.

Then look at the overheads. Finally, consider this information against what you instinctively know and have seen over time; does it make sense? If it does, then act.

So performance improvement isn’t rocket science; it’s about regularly making simple decisions based on all the information available.

In summary:

  • Cold-heartedly review your product or service: what’s unique? Then work backwards and forwards from that point and look at the surrounding input costs. Aim to lower them 10%. (Just don’t change what’s unique, only polish it, very carefully!)
  • Look at your overheads – costs for insurance, external accountants and lawyers, rent, outgoings and other miscellaneous costs –aim to lower them 15%.
  • Consider dropping that customer whose margin is too narrow or raise your selling price (you have little downside by letting an unprofitable customer go if you can replace them with an even a marginally profitable one).
  • Raise prices for additional services or minor products (those that are almost unnoticeable to the majority of customers).
  • Revisit where your sales come from (assess your “channel to market”) and ask how much it costs to “capture” your customer.
  • Look at the business clearly and assess if the way you are doing business is optimal – are you or your employees just over-complicating the process?
  • Are your staff engaged or just showing up for the pay cheque? Don’t underestimate the financial value of a happy workforce.

It’s not that difficult; make the easy decisions first. Review financial reports, use your intuition and observational intelligence, then have the courage to drop that customer, change that supplier, make that role part time and reap the rewards.

And I nearly forgot – sometimes the most obvious decisions are the least easy to see, so don’t be afraid to ask new employees what they think. Happy trading!

Steve Hogan was a former Client Director at Vantage Performance, a profit improvement and turnaround specialist. Vantage Performance is a member of the Turnaround Management Association Australia and winner of the 2008 and 2009 “Turnaround of the Year” awards.

 

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