Determined to Emerge from the Crisis with Management Factory
A turnaround becomes necessary when financial and operational problems have advanced to the point where profitability, liquidity, and entrepreneurial flexibility are severely constrained. In some cases, the situation has already reached a stage where, without swift action, the path toward insolvency appears inevitable. In turnarounds, speed is crucial: securing liquidity, stopping losses, streamlining structures, and refocusing on the viable areas of the business.
Turnaround management is not about fine-tuning and optimisation; it is about setting clear priorities and rigorously executing the necessary steps. The advisors and managers of Management Factory contribute strong analytical capabilities, execution power, and leadership experience. This is how a threatening situation becomes a manageable one – and how a crisis transforms into a foundation for renewed growth.
How do you approach turnaround management?
The first priority is to secure short-term survival. This includes reducing cash outflows, scaling back unprofitable activities, and concentrating available resources on the strongest business areas. Decisions are made under significant time pressure with a clear focus on effectiveness and feasibility. At the same time, a reliable data foundation is established to create transparency about the true situation and the levers with the greatest impact.
An effective turnaround is not limited to strict cost discipline. What is crucial is the strategic clarification of what the company should focus on in the future. The existing business model must therefore be thoroughly challenged: Which products, services, or customer segments genuinely contribute to value creation? Which capabilities of the company can be recombined or transferred into higher-growth areas? Where is a clean break necessary to avoid carrying burdens from the past? Often, success lies in deliberate reduction – or in the bold step of repositioning.
Implementation takes place under tight control and clear allocation of responsibilities. Progress and deviations are closely monitored to correct delays immediately. At the same time, great care is taken from the very beginning to involve the organisation in the change process – because a turnaround rarely fails due to the concepts, but more often due to a lack of acceptance or ambiguous leadership.
What happens after a successful turnaround?
Once the operational turnaround has been achieved, the next phase is stabilization. This involves embedding new structures, sharpening management and control mechanisms, and defining responsibilities on a permanent basis to prevent future setbacks. A successful turnaround does not end with the return to positive figures – it ends with the restoration of strategic agility and a clear vision for the company’s future.
Let us know which challenges your business is currently facing!
What is the difference between a turnaround and a restructuring?
A turnaround, or recovery, refers to averting a severe corporate crisis. A restructuring, by contrast, does not necessarily have to be triggered by a crisis. While a turnaround focuses on returning the company to profitability, a restructuring involves a fundamental reorganisation of the business to sustainably improve performance quality, capital structure, liquidity, and competitiveness. Both restructurings and turnarounds may include changes in corporate governance, and they are sometimes accompanied by M&A processes. In both cases, decisive and professional action is required. Management Factory can support you in either scenario.
Advantages of working with Management Factory – A Valtus Company
- Speed and precision. Companies in critical phases do not need lengthy reports. They need impact and momentum. Within a few days, experienced consultants and/or seasoned executives are available as needed, tailored to the industry, the situation, and the assignment.
- Combination of Executive Interim Management and Financial Advisory. Management Factory can provide Interim CEOs, Interim CFOs, and CROs (Chief Restructuring Officers). It can also provide advisory services such as going-concern forecasts, IDW S6 expert reports, and Independent Business Reviews.
- Partner-level involvement. Every turnaround mandate is personally overseen by a Management Factory partner for the entire duration of the project.
ReTurn Membership
Management Factory is a member of ReTurn, the independent Austrian expert forum for restructurings, recoveries, and turnarounds. At ReTurn events, restructuring managers, bankers, certified public accountants, management consultants, investors, and lawyers engage professionally with the topics of turnaround management and restructuring. ReTurn is also the Austrian chapter of the international Turnaround Management Association (TMA).
Worldwide network of restructuring managers within the Valtus Alliance
As the European market leader in Executive Interim Management, the Valtus Alliance has an extensive network of restructuring experts and restructuring managers.
