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  • Street-smart ways to generate cash

    An essential ingredient in any turnaround case is to improve financial predictability. One effective way to achieve this is to generate rolling short-term cash flow forecasts. The process of forecasting the short-term cash position, communicating the information to stakeholders and, of course, hitting those forecast targets is essential to rebuilding confidence among all stakeholders: investors, […]

  • Turnaround Step One: Assess Your Financial Strength

    A turnaround situation at any company, regardless of size, requires a candid assessment of the long-term financial well-being of the company. It’s important for outsiders considering investing or extending credit, and for insiders faced with formulating a turnaround strategy. A necessary first step in evaluating a company’s financial soundness is getting the right questions asked […]

  • Turnarounds: Riding the Northbound Train

    In a turnaround situation it’s human nature — especially for financial managers — to focus attention on “the numbers.”  But time and again I’ve found that it’s just as important to assess and evaluate the people on the management team, to make sure they are up to the task, motivated and committed to success. Breathing […]

  • Turnarounds: Where does it hurt?

    A diagnostic review or business assessment is the first step in the turnaround process, whether you are dealing with a global enterprise, a struggling division or moribund product line.  After all, the company doctor cannot cure the patient unless he or she knows what is wrong.  Note that this diagnostic review often must take place […]

  • 7 keys to managing stakeholders

    Companies in trouble often suffer from poor relationships with key stakeholders. Stakeholders include investors, lenders, suppliers, customers, management, employees and government regulators.  Some of these stakeholders are mission critical, and others are less important – the power and influence of each category of stakeholder varies with the situation.   Most will be aware that the company […]

  • Crisis management: First, find the root cause

    The first key to any corporate turnaround plan is accurately assessing the root causes of the crisis. You must separate the symptoms from the causes — an action plan that treats symptoms only makes matters worse.  You may find a variety of issues that “need work,” but it’s critical to figure out which are at […]

  • Other Recent Articles

  • Deadly Turnaround Mistake: Failure to Communicate

    Typically, as companies decline, less and less information gets communicated, often out of fear that key people will jump ship. As a result, however, cynicism and morale plummet. Often an “us vs. them” situation develops, along with internal fingerpointing and blame games. The key here is to orchestrate a quantum leap in terms of open […]

  • Turnaround Mistakes CEOs Make

    A successful restructuring may turn a business around and put it back on the road to health.  If companies detect problems early on, they can start making major adjustments to their operations, their finances and their whole approach to doing business. But the restructuring process can be fraught with perils if not managed properly because decisions […]

  • Turnarounds: Don’t Keep Bad News to Yourself

    A panel of turnaround experts at the recent CFO Rising West conference in San Diego shared insights of value to top execs at any company, but particularly CFOs who see the handwriting on the wall while their colleagues are in denial.   It’s important for the CFO to be forceful, said Ken Sanginario, principal with […]

  • Do You Trust Audited Financial Statements?

    Prior to the Enron financial scandal, most people didn’t stop to question the validity of corporate financial statements. Most of us, programmed early on to trust authority, accepted that the big-name auditing firms who “independently” examined and certified the financial statements were squeaky clean and above reproach. That was then; this is now. As we […]

  • Pick a Financial Statement Fraud, Any Fraud

    We’re approaching the third anniversary of that legendary $50 billion fraud. You know the one we mean—the investment scandal that rocked the financial world when Bernie Madoff made off with his clients’ fortunes. Well, he didn’t exactly make off with the fortunes; it’s more like he’d recycled the same dollars—or rather, reshuffled the same electronic […]

  • Cyber Attacks on Financial Statements!

    Don’t be fooled by that headline. A group of anonymous “hacktivists” wearing joker masks aren’t leading an online war against financial statements. No, but we do mean you can soon expect to see new information on corporate financial statements regarding their real or potential exposure to cyber attacks. For all the advantages of living in […]

  • Guess What? Numbers DO lie

    If history has taught us nothing else during the recent decade of corporate scandals and downfalls, it’s taught us this:  numbers DO lie.  Or rather, those that produce the numbers sometimes stretch facts and obfuscate the truth with misleading impressions about a company’s financial health.  We’re referring to audited financial statements.  How much have you […]

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