Corporate Renewal
Periods of economic and financial distress pose special challenges to the capabilities and decision-making processes of most professional management teams. Not only do such occurrences increase demands on existing managerial abilities, but they also create a whole new spectrum of legal, accounting, and financial considerations that impact the renewal process. Today’s increased competition, cyclical and volatile financial markets, and economic trends have created a climate in which no business can take stability for granted.
As once-stable, profitable, and competitive companies struggle to improve operational and financial performance, the expertise of HBV corporate renewal professionals can be critical to this revitalization process. The chances of successfully navigating the corporate renewal process increase through the use of HBV’s qualified turnaround professionals, who have the experience and expertise to apply sound practices of turnaround management to failing businesses.
HBV employs a five-step process in our renewal engagements analogous to that employed in the medical profession:
- Diagnosis – Determine the chances of the business’ survival, reasons for failure, appropriate strategies for survival, and initial action plan
- Triage – Take immediate action to treat the wounds endangering the company’s survival. This is necessary to provide the time and opportunity to effect necessary changes.
- Treatment - Develop and Implement the action plan to treat identified problems and effect necessary changes to turnaround the company’s fortunes.
- Stabilize the Patient – Once the emergency rescue plan has been implemented, it is necessary to turn attention to getting the company back on track to sustainability, increasing profitability, and generating acceptable cash flow and returns on assets and equity.
- Restore Long-Term Health – Effect long-term structural changes necessary to sustain improvements and ensure the long-term health of the business.