Turnaround: transforming challenges into opportunities

2024/03/20

Posted by 3Capital Partners

In the business world, facing challenges and crises is normal. It is during these times that having specialized knowledge makes all the difference in turning the situation around with a turnaround strategy. As a leading consultancy, we are here to help your company overcome tough times and transform problems into opportunities for improvement and growth.

A Turnaround Strategy

Turnaround is an English term meaning “to recover,” an business approach that aims to readjust or redirect a company back to its course before a disruption occurred.

This process involves identifying, diagnosing, and implementing effective strategies to revitalize a company that is facing financial, operational, and/or strategic difficulties.

Multiple aspects of the company are considered, including not just the financial side, but also the operational, commercial, and human resources sides. In summary, during the turnaround, it is crucial to review all key areas of the organization, adjusting those essential for facing current challenges and resuming growth and expansion.

Necessary Processes for the Turnaround

For a turnaround, we offer a wide range of solutions, tailored to the specific needs of each client, which include:

• Diagnosis: a comprehensive analysis of your company’s current situation, identifying the main problems and opportunities for improvement.
• Strategy Development: based on the diagnosis, we develop customized strategies to restructure, reorganize, and revitalize the company, focusing on:
  • Cash generation focus;
  • Adjustment of the organizational structure;
  • Reduction of expenses and costs;
  • Improvement of the debt profile through adequate financial engineering.
• Implementation: at this stage, the work is carried out side by side with the company’s internal team, to implement the outlined strategies effectively, ensuring a smooth transition and tangible results.
• Change Management: we assist in managing organizational changes, ensuring that the team is aligned and engaged with the turnaround process. This transition is carried out based on empowerment — or delegation of authority — aiming to maintain the consistency of profit and implemented improvements.
• Monitoring: the work does not end when changes are implemented. We continue to monitor progress and offer ongoing support to ensure long-term sustainable success, guaranteeing:
  • Improvement of immediate liquidity and normalization of operations;
  • Cost and expense reduction;
  • Improvement of commercial performance;
  • Training of managers and implementation of management tools and routines by indicators.

It’s Essential to Rely on Top Professionals

No matter how challenging the scenario for your organization, our team is prepared to provide the support and guidance necessary to overcome obstacles and reach new levels of success. The 3Capital consulting team is comprised of experienced associates, who have the knowledge and experience necessary to guide your company through this critical period. Contact us to find out how we can help transform the future of your company!