Turnaround is a corporate strategy designed to save and salvage a loss-making company and transform it into a profit-making one. Turnaround is a more intense re-strategizing process to protect the company from bankruptcy. In extreme cases, the only possible solution would be to close the company to protect further dilution of shareholder worth.
Turnaround strategies may or may not entail change of leadership and senior management, but almost always have these distinct requirements:
- Identifying and Acknowledging problems within the company
- Develop, gain shareholder approval and swift implementation of remedial plans
- Stop short-term bleeding and protect/generate cash flows for long-term sustainability
- Coordinate a 3-pronged revival with Strategic, Financial and Operational resurrection