Companies in financial distress face a unique set of challenges. They must generate enough cash for short-term survival while improving the most viable parts of the business to ensure long-term success. Achieving a turnaround or transformation is challenging because multiple parts of the organization often must be overhauled at the same time.
The underlying causes of liquidity problems or operating losses are often complex and not readily apparent. Companies that recognize problems early—before the decline accelerates—have more time and flexibility to correct course. But denial or a lack of urgency may hinder these early change efforts. When bankruptcy is unavoidable, a robust reorganization plan that addresses the needs of all stakeholders is imperative.
BCG’s approach to turnaround and transformation focuses on the most important operational, strategic, organizational, and financial levers in order to ensure a comprehensive recovery. We can validate an existing turnaround plan or develop a new one tailored to a client’s specific circumstances. By combining our deep industry experience with the proven tools of crisis management, we create lasting impact—fast!
These are some of our key service offerings:
- Stress Diagnosis. Our proprietary diagnostic tool identifies the sources of financial stress, pinpoints areas for improvement, and estimates the magnitude of the necessary changes.
- Turnaround Planning. We provide the strategic inputs needed for a turnaround plan, including a comprehensive industry analysis and portfolio implications.
- Operational Cost-Out Programs. BCG will design and execute a plan for rapidly reducing costs throughout operations.
- Turnaround Management. We coordinate the various parties involved in a restructuring to meet key deliverables and milestones. We track progress and ensure rapid execution.
- Using battle-tested operations experts, proprietary tools and techniques, and partnerships with leading crisis managers, BCG’s teams are committed to stabilizing clients’ businesses and building their future success.