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Turnaround

INUO! delivers intensive, short-term interventions that stop operational and sales performance decline, stabilize the business and implement foundation for sustainable growth.

With the business environment becoming volatile and unpredictable, companies may be forced to take dramatic actions to generate impact rapidly or risk going out of business. Typically, business challenges unfold in phases, which requires a unique action.

It is essential to immediately optimize cash availability, to adapt the cost structure and EBITDA/Turnover ratio to the reality of the moment while anticipating opportunities for rebound.

It is paramount to install the appropriate plan to rapidly overcome challenges including people, finance and operations.
Inuo Turn Around Program

Alarm Signals

Real change begins with truth. See the issue clearly, act boldly, and shape your future.

Working Capital and/or Liquidity


  • Declining or negative Cash-flow
  • Contingent Liabilities
  • Unresolved near-term debt maturities
  • Increase in Accounts receivable aging
  • Increase in outstanding Accounts payable

Financial

  • Declining stock price
  • Declining bank and/or Bond price
  • Inability to meet debt covenants
  • Diminishing liquidity
  • Downgrades in debt ratings
  • Accounting Restatements
  • “Window dressing”

Profitability and Market Perspective

  • Shrinking EBITDA margin
  • Reduced Capital investment programs
  • Deteriorating industry fundamentals
  • Adverse regulatory environment
  • Company profit warning

Employees

  • Headcount
  • Management constant turnover
  • Sick leave ratio
  • Working injury ratio
  • Strike ratio

What you should do, straight away

Manage your cash

At first, what matters the most is Cash Availability Strategy, how to continue to optimize rapidly Cash Cost structure, adapt EBITDA to cost ratio and take advantage of the turmoil for the coming months.

Strengthen and implement Key Actions as described below, shall speed up your recovery plan:
1

Qualify the current cash impact across activities and geographic levels (country and region), and drive swift, tangible resolution.

2

Have a Dynamic Liability Management program

3

Have an efficient Working Capital program and Working Capital Requirement weekly review

4

Optimize your Free Cash flow generation

5

Have 3 months rolling Fixed costs reserve ahead

6

Adapt production capacity to the market reality and size fixed costs accordingly.

7

Size EBITDA Ratio accordingly

8

Variabilize your costs, when it is possible

9

Analyze and anticipate Suppliers and Clients risks

10

Review projects; delay those without ROI. Prioritise strategic ones with funding and capacity. Halt costly integrations.

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Our Approach

The turnaround process can be summarized in three key stages:

1

Company situation

  • Understanding organization’s current challenges, strategy and culture
  • Identification of clear opportunities for operational and financial improvements and first level of potential actions identification
  • Turnaround approach plan
  • Confirm commitment to address necessary change
2

Full Turnaround Diagnostic

  • Concrete two weeks Diagnostic
  • Quantification, qualification and precise pre-roadmap  approach
  • Quick savings roadmap / Cash management roadmap
  • Turnaround roadmap. Prepare Turnaround Plan execution
  • Results linked to concrete KPIs / Advanced fee structure
  • Set Discipline in the execution
3

Implementation & Care Program

  • A single person accountable and driving delivery.
  • Weekly delivery – weekly review
  • “Boots on the ground” Senior team & Specialists
  • Weekly results working hand in hand with Management Team
  • Behavioral change at point of execution
  • Knowledge transfer & training as key factor of sustainability success
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