Subject areaRevenue and sales
Also known ascorporate turnaround
A turnaround is the plan that brings a company in difficulty back into balance before the crisis becomes irreversible.
It usually proceeds in two stages: first it secures liquidity (the cash available to meet payments), then it acts on costs, offering and organisation to rebuild the margin.
On the commercial side the work often means returning to the core business (the company's central activity) and dropping customers and products that consume resources. In the European Union, Directive (EU) 2019/1023 requires Member States to give companies preventive restructuring tools, procedures for acting while the crisis is still manageable.
Source: Direttiva (UE) 2019/1023 del Parlamento europeo e del Consiglio.
An example
The case below is constructed, because the term does not yet appear in the articles. A chemical company with falling margins and too many product lines renegotiates its debts with the banks, closes the loss-making lines and refocuses its sales force on the customers who pay most.
Enrico Giubertoni. Licensed under CC BY-NC 4.0: you may quote, translate and adapt this entry with the author’s name and a link, stating any changes. For commercial use, write to info@enricogiubertoni.com
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