RECOVERY OF VIABILITY AND PROFITABILITY.
The problem
when talking about feasabilityWe consider the possibilities of carrying out a project or undertaking. Infeasibility, on the other hand, represents its impossibility.
There are many companies we know of that have had to consider or face this situation, with different causes of origin, such as Kodak, Bankia or Abengoa.
Some of those causes are structural (such as maladaptation to new technologies applicable to the sector, regulatory and normative changes, incorporation into the market of new international actors) and others are situational (due to large extraordinary or sustained losses, apart from unexpected ones, due to the effect of competition or due to lack of foresight or poor management, etc.).
And the effects of such unviability are very varied, including the inability to meet payment obligations for liquidity crisis, the legal cause of dissolution of the company with an obligation of financial restructuring and recovery of assets, the excessive increase in debt, or a pre-bankruptcy and bankruptcy situation, potentially leading to the partial or total loss of control of the company, or to a liquidation process with its disastrous legal consequences.
In all cases, it represents a huge loss in the value of the investment and its returns, also of the company image in the market.
For the most part, as managers or business owners, we can act proactively in their (1) prevention, putting in place in time the necessary means to prevent crossing that deadline, or in a more desperate case, in his (2) correctionsince the situation has taken root in the company or business unit, at the very least, an ugly scar will remain.
The solution
Hiring an interim management service becomes a appropriate and optimal solution for the problem raised, both in its prevention and its correction, in cases where there is no managerial capacity in the company for this, prior experience in this type of process, or where it does not want to use employed personnel to avoid “burn it down".
The interim manager is a professional with proven experience in crisis management, or turnaround, which, with numerous successful similar service situations, applies the techniques and knowledge acquired, having a priority objective which is to return the company to the path of profitability, from two approaches:
- Preventive, putting all means into preventing in advance any effect of business unviability, carrying out actions of economic and financial restructuring, strategic planning and its committed execution, reorganization of the personnel and operations structure, or commercial enhancement, and resorting if necessary to its references and contacts cultivated during its professional career (strategic suppliers, potential clients, sources or funds of capital, etc.).
- corrective, in a shock and action plan in response to business uncertainty, with special emphasis on the external capital support for the continuity of the activity until the correction of the causes that originated the situation of unviability, already with visible and evident effects.
In both cases, interim management is structured as a flexible and effective solution for a problem of enormous relevance and impact on the company and the entrepreneur.
See more
EPUNTO interim management success storiesAbout EPUNTO Interim Management Services Other situations for which an Interim Management service is the ideal solution
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