Turnaround Services
Times of economic and financial difficulties present unique challenges to the capabilities and decision making
process of most management teams. Increased competition from offshore manufacturing, cyclical markets and pressure from customers
have created a business climate where no metal caster can take stability for granted.
The chances of successful corporate renewal
increases with the use of qualified turnaround professionals. New lender liability laws have increased the need for turnaround
management. At one time lenders could take control of client companies that were in serious financial peril. Today, the
courts view this as equity participation, forcing banks to avoid direct involvement with corporate management. A turnaround
specialist, operating either as an interim manager or consulting basis, may replace the company’s CEO or temporarily assist in the
decision making process.
A turnaround specialist brings a fresh view point and complete objectivity. An experienced professional
can spot problems that may not be visible to employees and direct the implementation of solutions. With hands-on experience
in metal casting, The Folk Group has special expertise to bring to the metal casting industry.
Some of the issues a turnaround
specialist may see are:
Ø Ineffective Management Style
Ø Over-diversification
Ø Weak financial function
Ø Poor lender relationships
Ø Lack of operating controls
Ø Marketing lag
Ø Explosive growth
Ø Precarious customer
base
Ø Family versus business matters
Ø Operating without a business plan
In implementing a turnaround, we will
1. Analyze the situation
2. Develop and implement an emergency action plan
3. Work to change/revitalize
management
4. Restructure the business
5. Return the business to a new normal basis