If your company has fallen into an economic crisis, you must intervene courageously with a holistic turnaround management approach. It is no longer enough to inject liquidity into your company to turn it around. Deeper-lying causes of the crisis must be identified and reliably eliminated. Sham solutions do not lead to sustainable turnaround.
As a rule, the initiative for a turnaround management project comes from investors. These can be commercial banks, but they can also be shareholders. In most cases, capital is required for turnaround management. Anyone who injects additional capital into a company in a critical economic situation understandably wants to be sure that the company can be restructured with this capital with a high degree of probability. This can be proven to investors by a restructuring report with a positive going concern forecast for the business.
The first step in any turnaround is the preparation of a coherent turnaround concept. However, a concept can only be effective if it is implemented. Implementation expertise is needed for a sustainable turnaround of the whole business (7.2.2). Often, turnarounds cannot avoid staff reductions, but these should be implemented with care and social responsibility. Staff reductions without a strategic move and/or an effective process reshaping are usually not promising.