Recovery and Turnaround

Macks Advisory offers a complete range of insolvency services for individuals or businesses in financial difficulty.  We endeavour to provide the best result for all stakeholders.

We understand that whether it’s pre-appointment advice or advice on undertaking a formal appointment, we can help you to make the right decision; regardless of whether it’s turning around an ailing business or accepting other alternatives.

We have successfully traded many enterprises, achieving good results to benefit business owners, financiers and creditors.  Our team is skilled and well connected to offer genuine options to businesses in any industry.

Companies’ fortunes will wax and wane and while some fluctuations are unpredictable, many are  predictable to an extraordinary degree of accuracy, given the right data and enough of it.

Certain operational circumstances of companies will indicate predictable stability or instability.  Companies fortunes tend to be seasonal and cyclic.  A company’s urge to seek capital or otherwise try to in-grow suddenly and expansively after a pleasant period of plain sailing could be a warning of storms ahead.

Experienced, ever-vigilant investors understand cyclic concepts and can readily read signs at certain times and circumstances of cycles that spell trouble.  These investors know when to call in turnaround expertise.

You’ll find that turnaround is the key to credibility.

The bank’s perspective of your business must necessarily differ from yours, if on no other issue than risk factor.  You’re willing to accept a higher level of risk for a higher expected return.  A bank’s expected return in any involvement with your business is always going to be less than your return and so must always countenance less risk.

This simply means that to get extra funding from your bank, be it for expansion or any other reason, it will be the bank’s view of the state of the business that counts, rather than yours.  Either the bank is likely to hire third party expertise to assess your situation or YOU take the initiative by calling Macks Advisory who has proven specialist turnaround capability to get your business in good shape.  Clearly the latter is preferable and you can approach your bank with your credibility in-tact.

As a turnaround specialist, we will show you where you’ve been denying the obvious and help to establish a valid operational plan by developing appropriate tracking mechanisms.  The success of the business will be gauged on cash flow rather than income statements and all aspects of management will be reviewed and modified where necessary to make contributions to a positive cash flow.  We will:

• Assess the importance to the business of fixed costs, overheads, margins, sales forecasts, key suppliers and customers
• Develop a conservative baseline budget to accommodate the business’s major constituencies – the bank, board of directors, shareholders
• Establish a scorecard to measure not only performances by the businesses departments, but the over-all performance of your business against industry averages and incorporate a red flag system to alert management to problems
• Develop enough appropriate data sources to highlight areas of concern and enable speedy and effective responses to problems
• Convince you with logic, possibly over-riding sentiment and prejudice, that one or all of the following would be priorities:
  • Selling more products
  • Raising prices
  • Liquidating a division or paying of part of the workforce

We will help you build a team to execute recommended changes, weed out ineffective staff and identify middle management staff that may have been inhibited by those above them.

Having made the business viable from the bank’s perspective while also establishing your credibility; having convinced creditors that turnaround WILL occur, Macks Advisory will then be in a position with you to persuade the bank that it should allow a specified time to ensure that turnaround DOES occur.

We will give you a fresh, unbiased evaluation of your businesses products, services, extent of their innovation or competitiveness, delivery time, quality and cost.

We will offer advice not only about keeping your customer base in tact but also extending it, because more customers means more cash, more cash buys you more time to grow and gives you options like paying off debt or investing in pursuing more sales.