Business turnarounds – pre-bankruptcy challenges – often require a deft touch to balance the constituents’ needs, i.e.  lenders and suppliers want to collect the debt … owners want to preserve ownership. It is important to understand the constituents’ requirements to execute a successful turnaround.

 

Once in a turnaround state, the CFO must first identify the key constituents and meet with them to identify critical issues, and develop a turnaround agenda to review with company executives. Ideally, the constituents’ needs will be satisfied through a well-developed plan with deliverables, and accountabilities.