Business Reorganisation
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We know from experience that a corporate crisis most often develops over a long period of time and progresses in distinct stages. The strategic crisis comes about when the wrong decision (or no decision) is made with regards to long-term competitiveness. Soon after, the business runs the risk of running into a profit crisis. The decrease in competitiveness results in declining sales figures and, subsequently, reduced profits. Revenue can be kept constant in the first instance, but it takes extraordinary measures to do so. However, once all means have become exhausted, an acute solvency crisis sets in, which, in the absence of courageous remedial action, will lead to bankruptcy.
The sequence of described events is typically accompanied by the dismissal of a crisis situation by the very managers accountable for it. Quite often, a reaction only comes about in the revenue crisis, or even as late as the solvency crisis. The chances of a successful business reorganisation rapidly decrease at each stage. Once the company’s financing partners have become alarmed, coping with the crisis with ones own resources becomes increasingly difficult. In this respect, the best defence against crisis lies in its early diagnosis and remedial action.
If required, ncc supports your business at any stage of the crisis, during which, the roles of consultancy and interim management are intertwined. What are critical are rapid, coordinated and parallel courses of action, with the aim of diagnosing the causes as quickly as possible. At the same time, we establish transparent and proactive communication with the corporate stakeholders. Besides offering operational crisis management, which includes cash management, cash planning and working capital management, we work with you to establish the recovery plan. Drawing on our many years of experience, we support you through the rigorous implementation of agreed action.
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