Business Turnarounds

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Innovation is an important element of any business and can be a key differentiator between market leaders and their rivals. Our competitors can now be anywhere in the world, and that world is always changing.

It’s important for small businesses to innovate so they can evolve and stay competitive. For innovation to thrive in Australia we need a cultural shift, and the government plays a big part in creating an environment where innovation and entrepreneurial behaviour can thrive.

And Logic Figures as a company is no different. We also need to be innovative, smart, eager and nimble not to mention progressive. That’s why our consultancy and advisory firm focuses on the principles of Eradicate, Automate, and Delegate to create an innovative and competitive advantage.

Logic Figures works with SMEs and entrepreneurs to explore realistic alternatives to preserving the economic value of their company if it’s in distress. And by working with us before appointing a Voluntary Administration you’ll be able to explore options for a genuine turnaround such as:

  • an organisation and process restructure
  • asset sales
  • cost cutting
  • a debt and equity restructure
  • divestment
  • a financial balance sheet restructure.

Turnaround management is a relatively new and emerging field in Australia. But as more businesses become aware of it, and stakeholders such as banks, creditors and employees see the value in the process, it can and will decrease the rate of corporate failure.

For a successful turnaround, the management team must be able to confidently answer these questions at key milestones during the process:

  • Can we demonstrate that the core business is viable?
  • Can we manage and ‘motivate’ key stakeholders?
  • Does management have sufficient credibility?
  • Is our business’ reputation intact?
  • Can we obtain sufficient credit from suppliers?
  • Can we secure internal and/or external funding?
  • Is there sufficient cash flow funding?

The 3 Phases of Turnaround Management:

Assess Viability

The first stage comprises a high level and detailed investigation of the business and its problematic situation and can take around 2-4 weeks of time.

Stabilise and Develop Strategy

Once the issues and priorities have been identified and agreed to by all the key members of the management and the company, Phase 2 involves on focusing on the aspect of stabilising the business and planning the recovery strategy from all the issues and problems. The timeframe can vary widely depending on the business situation, problems and their nature of complexity and can take from 4 weeks to 3 months’ time to complete the same.

Implementation and Monitoring

Once Phase 2 is underway and under process, the focus will be the detailed implementation and monitoring of the finalised strategy. This may include setting up an advisory board to assist the owners, directors, or board to maintain its focus on the implementation of the strategy. The business may bring on board a Specialist (such as Logic Figures) whose main and principal role is to implement the Turnaround Management strategy

Once it’s established the business can be rescued, a plan needs to be developed that allows enough time and financial resources to address the business’ fundamental problems by tackling the underlying causes of the failure.

We believe that prevention is always better than cure. We always encourage business owners to come to us for help with saving their business or turning it around as early as possible, otherwise the only solution left will be Liquidation or Bankruptcy.