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Turnaround Value Creation

Value creation when the business is under pressure

Applying value creation techniques and priorities on under-performing companies or divisions radically improves focus.

The single-minded focus of Deloitte’s Value Creation Services team is to improve cash and enhance profits for our clients.

With a suite of proven and unrivalled techniques across Cash, Working Capital and Performance Improvement, we quickly identify, plan and implement a range of tailored initiatives to deliver tangible benefits across the entire value chain to provide a sustainable basis for a business under pressure.

So whether your business is currently stressed, or the outlook suggests a need for turnaround support, contact us today to see how we can help. We have an enviable track record of driving growth and helping organisations get back on track.

Explore our Turnaround Value Creation services

In challenging times it is important to recognise when your business is facing headwinds - the causes of underperformance can manifest themselves both as internal factors (such as liquidity concerns, loss of key management, stagnating profit margins or a growth strategy not going to plan) or external factors out of your control (for example, currency movements, competitor innovation or trade barriers).

Acting early and quickly ensures value preservation and value delivery.

How we can help

We are seasoned specialists who work shoulder to shoulder with you to drive rapid and sustainable profit and cash acceleration in challenging situations - we deliver what you need at pace and have a proven track record supported by deep sector insight.

Our four core offerings are:

  • Turnaround - rebuilding performance rapidly
  • Cash and working capital management - driving cash sustainably at speed
  • CRO/CXO - providing practical leadership from experienced hands on advisors
  • Stakeholder management - rebuilding relationships and lending credibility

Working Capital is often described as the 'Lifeblood of a Business' as it represents the operational liquidity of a company.

Maintaining an optimal level of Working Capital can be a challenge for even the most profitable businesses. If Working Capital is not running efficiently, the flow of cash can significantly affect the liquidity of a business. Cash can be tied up in a multitude of ways including slow moving stock, early payments to suppliers, and slow collections from customers. This is akin to a blockage in the arteries of a business preventing cash from circulating through its cycle in a timely manner.

How we can help

  • Identify opportunities to improve cash flow through working capitals levers
  • Order to cash
  • Procure to pay
  • Forecast to fulfil
  • Make working capital more efficient through sustainable process changes
  • Operationally implement opportunities to improve cash and working capital
  • Use data analytics to create working capital dashboards using transactional data

We provide hands-on leadership and management during challenging periods to deliver tangible turnarounds. Our specialists bring with them four key skillsets required in the situation:

  • Leader: of a Company’s restructuring, acting as the conduit and focal point for all stakeholders and advisors
  • Strategist: to understand the key challenges and develop robust restructuring strategies and approach
  • Negotiator: to evaluate the debt and capital restructuring options and support negotiations
  • Operator: to identify and address root causes of under-performance working seamlessly with management

When businesses need to rebuild margins, improve cash generation or strengthen their balance sheets, we help identify value creation opportunities fast, and support the delivery of rapid cash and EBITDA benefits. COVID-19 has had significant impact on businesses and pickup in activity for many is currently unclear. Given this, there is an immediate need to set out a practical and flexible plan to improve cash generation and profitability.

How we can help

Step 1) Define and forecast recovery scenarios for your business

Step 2) Explore available options

Step 3) Implementation

Even the most successful companies sometimes need to divest or wind down underperforming or non-core assets. 

Managing these assets often involves working out how to make a clean cut, usually within an accelerated timetable. Deloitte offers comprehensive solutions to help companies evaluate their options in this situation. We draw on the power of data analytics as well as the extensive expertise in our network of global services teams and jurisdictions to guide clients towards optimal exit outcomes.

How we can help

Exiting an asset without a well-thought-out and carefully structured plan can have a negative impact on many aspects of the core business. The company may have to navigate issues relating to reputational risk and spend time and money concluding the exit. Key scenarios:

Fix. If retention is an option, we collaborate with our Value Creation Services team to develop strategies. We can also provide access to Deloitte’s turnaround experts who specialise in helping clients identify and implement strategies to improve profits.

Sell. When an asset is underperforming or non-core, businesses often prefer a speedy outcome. This is where our specialist Accelerated M&A team supports clients looking to quickly dispose of all or part of the non-core or underperforming operation.

Close. Our managed exit specialists prepare the closure process, starting with high-level planning to identify the associated costs and risks. We then help develop a detailed exit plan and provide project management and hands-on implementation services to complete the disposal.

When a corporate entity needs to be liquidated, our Corporate Simplification team can advise on planning and implementation once operations are wound down.

Whatever the commercial context, it is rare to encounter an organisation that could not benefit from streamlined operations, reduced costs or increased sales. Deloitte's Performance improvement team - all change management and implementation specialists - has a singular focus: to deliver rapid operational improvement from improving cash flow and EBITDA margins for clients in any industry.

Deploying skills ranging from pricing strategy optimization and SG&A cost rationalisation through to organisational and process review and redesign, we target the improvements that will have the biggest impact on your bottom line in the shortest period of time.

How we can help

Our pragmatic results-driven team applies a financial-investor lens to performance improvement. We have deep situational and sector experience, and take a hands on and collaborative approach to achieving sustainable results.

  • Diagnostics - comparator insight using proprietary benchmarking databases built from our own extensive experience
  • EBITDA improvement - cost-reduction and revenue growth strategies
  • Operating Model optimisation - organisational review and redesign
  • 100-day plans - design, validation, implementation: partnering businesses and investors to deliver value for all stakeholders
  • Zero-based budgeting - performing the role of 'challenging friend' throughout budget process, to ensure all costs are justified.

Value Creation Services

Think boldly, then deliver

Deloitte firms' Value Creation Services are predicated on the rapid identification, planning, and implementation of prioritised performance improvement initiatives that will improve cash and enhance profits.