text: What Is Turnaround Management?
  Turnaround management is the process of assisting businesses in financial duress and helping them become financially viable again. This process usually involves helping the business recover operationally, restructuring the company’s balance sheet and other financial records, and reorganizing the entity’s business hierarchy.
  When Do Companies Need Turnaround Management?
  There are several indicators that suggest a business needs turnaround management to become financially viable once again:
  - Cash flow insolvency occurs when a company is not able to pay its debts when they become due.
  - Balance sheet insolvency occurs when a company’s liabilities exceed its assets on a fair market value basis. Turnaround managers can help a company restructure the company’s debts and negotiate relief with creditors.
  - A rapid or prolonged decline in stock price may be a sign for a company to hire a turnaround manager to maximize profits once again.
  - The need to lay off employees or cut other expenses may require the assistance of a turnaround manager to give an objective view of role redundancies and other inefficiencies.
  What Does the Turnaround Management Process Look Like?
  There are three basic stages of any turnaround strategy.
  1. Assess the Situation
  To diagnose the problem, turnaround managers consider the potential causes of the issue, the duration of the problem, and its severity. They look at the company’s financials, such as income statements and balance sheets, consider how many creditors need to be addressed, and evaluate ready sources of liquidity.
  2. Consider and Evaluate Options
  The turnaround manager then looks at potential solutions to the identified problems. They’ll evaluate alternative solutions and create financial models and projections to predict how possible solutions might perform in the future.
  3. Execute the Strategy
  With an identified and proven solution, turnaround managers help companies execute the restructuring strategy. Their assistance may involve direct management of the financial process or the empowerment of other stakeholders to help implement the plan. Most turnaround strategies require a handful of tweaks to perfect the results.