Companies experience a crisis as a result of different factors – external, internal or a combination of both. In these situations, immediate intervention is imperative in order to overcome the crisis quickly and efficiently.
The recovery process of a company in crisis requires managerial qualities that differ from those required for “routine” company management.
The recovery process requires fast decision-making based on reliable and updated data with wide reference to considerations – operational, business, financial, legal and sometimes even personal and familial.
It is in these situations, that the unique capabilities of KCR’s team of experts expressed – stabilizing, recovering and even improving companies facing cash flow difficulties, companies in a management crisis or companies facing other unpredictable situations.
KCR’s concept of business improvement is based on three main aspects: business and economy, structure and operation, and financing and funding. The work of our team of experts includes closely tracking these three aspects, and includes three stages: introducing a financial review, formulating a recovery plan, and finally – ongoing business support to implement the plan.
The business economy aspect refers to all economic data of the company, including: the asset composition, the economic value and accounting value, the state of liquidity, the budget, cash flow management, locating and minimizing actions resulting in loss, locating unrealized potential actions and improving them, analyzing activities according to varied business dimensions, up to the individual product or service (activity sectors, market segments, geographic distribution etc.), analyzing debts and liabilities as well as diagnosing the financial needs.
The structure operational aspect includes the company’s legal structure – the holdings tree, transactions with related parties, and prices of transfer; the ownership and management structure – transactions of interested parties, dividend policy, quality of management and the nature of relations between the owners; the company’s structured organization, its information systems and reliability of reports, process of inter-organization improvement and streamlining processes, conduct with suppliers and clients, inventory management method, manpower structure and from a wider point of view – analysis of needs and understanding the market in which the company operates.
The financial and funding aspect includes the following data: debt and capital structure, repayment power and meeting financial stipulations, streamlining and reducing financing and credit expenses for the company, as well as negotiating with the banking system, clients and suppliers, creating trust with financial institutions, credit management and fundraising.
Each company and each case is examined individually by KCR’s team of experts for the matter of corporate recovery. Despite this, it is possible to state a number of stages which constitute a theoretical basis for the required method of action for an effective recovery process.
At this stage, the KCR expert team prepares an extended financial review which includes one or more of the sections described here. The review is meant to clarify the company’s existing state precisely in order to locate the recovery drivers:
Based on the comprehensive situation report, the KCR improvement team formulates a strategic recovery plan for the current and following employment years. The recovery plan handles all company’s activity interfaces:
At this stage, the KCR expert team accompanies the actual realization of the recovery plan, with guidance, partnership and assistance in handling the current management and operation challenges:
A company in crisis requiring a recovery process is in a shaky condition and requires fast decision making and different set of managerial capacities. If you are interested in changing the state of your business – an efficient and focused recovery process can unequivocally result in a turnover of business results.
For this purpose, it is needed to perform wide and in depth work and research by KCR’s team of experts.
Real recovery requires comprehensive interdisciplinary observation, and not specific analysis. The business is a complex array and should be analyzed and diagnosed from a wide perspective.