Restructures and Turnarounds

Restructures and turnarounds are terms that are often used as synonyms. However, SOS notes some unique differences in these terms.

Restructuring:

• Focuses on the balance sheet,
• Organizational costs,
• Cash flow,
• Business value for either liquidation, organizational sale, or debt discount.

Turnarounds generally are more inclusive and focus on the following elements:

• Cash flow demands;
• Profitability;
• Operational structure and effectiveness of the enterprise's management, systems, procedures, pricing, purchasing, production, and market strategy;
• Contribution to profits by division, facility, or product; underutilized assets;
• The level of distress, the “window of opportunity” or time remaining before funds are exhausted; pressure, patience, and support among the various stakeholders with an aim to gain common goals;
• Necessary business changes to match industry momentum;
• Leadership and talent to support such change;
• Moving to restructuring strategies (above) only if and when the company has previously maximized its self-help opportunities.

In the decades of restructures and turnarounds that have been performed by personnel of SOS, every case has involved its own unique situation and solution. SOS prides itself on developing a range of business skills and tools as well as its experience with applying them correctly and efficiently. The full toolbox of SOS is used in restructuring and especially in turnarounds. Some key methods are as follows:

• Bankruptcy Go-forward Plans
• Receiverships
• Chief reorganization officer
• Liquidation

RESTRUCTURES AND TURNAROUNDS CASE STUDY

To learn more about our experiences with Restructures and Turnarounds, read our Case Study.