Indicators you may need turnaround counsel include:
- When the sales forecast is off by 20% or more
- When the cash burn exhausts available cash within 12 months
- When capital raising strategies fail
- When owner compensation is not the cause of operating losses for two years in a row
- When competitors are gaining market share
- When you spend more time on cash management than on customer acquisition
Experienced turnaround advisors approach the situation through a systematic process to analyze and correct business performance. By combining industry knowledge, performance analysis against industry norms and detailed income statement review, alternative strategies can frequently be developed in a short time period.