How to Achieve a

BUSINESS RECOVERY

successionleadershipchange.com

Four Key Questions...

1. Investigate the business:What’s Going On Right Now?

2. What are the Immediate Risks?

3. Seriously assess the business viability: Will it Survive the Recovery Process?

4. What can be done (practically)?

5. Identify the Recovery Plan

successionleadershipchange.com

One Commitment

• Review Financial information including: Aged creditors & debtors; Balance Sheet; P&L; forward cash projections

• Understand the Business

• Canvas views from CEO, CFO, staff, advisors:

- What are the constraints?

- What are the opportunities?

successionleadershipchange.com

Investigate the Business - What’s Going On?

Will it Survivethe Recovery Process?• What short-term funding needs?

- Cash available now

- Cash requirements

- Cash generation options

• How long can the business sustain on its current path?

successionleadershipchange.com

What are the Immediate Risks?

• Identify risk areas & what can be done to stabilise the company & preserve value:

- Where is value leaking?

- What are the regulatory or legal risks?

• Implement controls accordingly

• Assess the CEO & current management: could they achieve a business recovery?

successionleadershipchange.com

What can be done (practically)?

• Sales & customer specific strategies?

• Supplier & debt strategies: what can you offer them for support?

• Cost reduction strategies?

• Working capital reduction strategies?

• Equity strategies?

successionleadershipchange.com

The Business Recovery Plan

• Based on the previous questions:

- Create a Recovery Plan that specifies how, when and where you will deploy resources, what the conditions are of any further debt/equity commitments & any conditional decision (stop/go) break points

- Deploy a monitoring program to provide ‘real-time’ feedback on all key risks

successionleadershipchange.com

THANK YOU...

successionleadershipchange.comVisit us for more assistance

and Good Luck!