Our Services
Turnaround and Restructuring
The skills required to turnaround and restructure a business are multiple and draw on elements of strategic planning, financial management, forecasting, stakeholder management and operational improvement. Whilst management can prove themselves capable of running a steady state business, when competing elements of distress are introduced it can be difficult to know the best route to take.
At Preston Advisory, we have worked with distressed businesses for 19 years advising, shaping, restructuring and taking hands-on management roles to enable businesses to return to profitability and cash generation as quickly and painlessly as possible.
We advocate a quick response to distress, an honest appraisal of the circumstances and a clear, robust strategy for turnaround that all stakeholders can buy into.
We can work alongside existing management as an adviser or join the team on an interim basis to drive a turnaround project forward - whichever works best for the business.
Interim Management
Interim managers can be engaged for a variety of reasons. To fill short term gaps in management whilst a permanent replacement is sought, to oversee implementation of a specific project, to undertake a restructure of a particular division or department or to drive a physical or cultural change through an organisation.
Often an interim manager has a specific skill set that is required in the short/medium term, is somebody who is unconnected to the organisation and is able to make unpopular decisions without damaging the ongoing reputation of permanent management.
At Preston Advisory, we have undertaken a number of interim roles - most often in change management. We work alongside existing management to pursue the business objectives and to deliver agreed outcomes as swiftly and as smoothly as possible.
Strategic Planning
It is easy for managers to become so close to the day-to-day running of their business that they lose sight of what they originally set out to achieve. A clear, well thought out strategy identifies to all stakeholders where management intends to take the business in the next 12 to 24 months and the key activities that need to be delivered upon. Stepping back and refocusing on strategy will optimise business outcomes.
At Preston Advisory, we can work with management to identify strategic objectives how closely these align with other stakeholder's objectives - including key funders; how achievable the objectives are; and can ensure that the business is doing the right things to actually succeed.
Each strategic plan will be supported by clear a clear set of forecasts, timelines and milestones.
Financial Forecasting
Short and medium term forecasts are one of the most important ways for management and stakeholders to understand and control their business.
A regularly updated short term cash flow forecast (usually 13 weeks) should capture a full quarter's projected cash requirement and utilisation.
The business can identify pinch points well in advance and manage its working capital accordingly. A well constructed cash flow can prevent unplanned overdraft excesses and demonstrate to all stakeholders that management are in control of their business.
Medium term forecasts underpin the strategic plan and translate proposed actions into measurable and quantifiable outcomes. The forecast will allow management to measure itself against clear financial targets and identify the medium term funding requirements of the business.
A good forecast will allow for flexibility and can be sensitised to model a number of outcomes depending on fluctuations in assumptions.
At Preston Advisory, we have the financial skill to assist management in the preparation of both short and medium term forecasts - from a simple stand alone set of numbers through to complex integrated models across a range of different business processes and financial outcomes.
We pride ourselves on creating financial models that can be used to monitor and control, long after we have ceased to be engaged.
Financial Reporting
Good financial information should enable management to make good decisions.
At Preston Advisory, we recognise the need to produce information for a variety of business control purposes. Management Information (MI) is not just numbers. Quantitative data is valuable to any business, but commentary or opinions are also MI and are important to provide a comprehensive, balanced view.
We will work with management to design a suite of management information processes and controls to ensure that reporting is:
- Accurate – the correct numbers with commentary from the right people
- Timely – available quickly enough to enable management to act
- Relevant – displaying what the recipient needs to know to make decisions
- Consistent – from period to period, to allow the recipient to spot trends and make sound decisions
Stakeholder Management
There are a number of stakeholders in a business that require careful management. These can include (but are not limited to):
- Banks
- Invoice discounters
- Factoring companies
- Creditors
- Credit insurers
- Landlords
- HMRC
- Equity funders
- Employees
Often management can struggle to balance the needs and demands of each stakeholder with their limited resource, capital and time.
At Preston Advisory, we are used to dealing with complex stakeholder situations and in balancing the challenges presented by each. In our experience, stakeholders take comfort from the introduction of our third party expert involvement into situations and we can assist all parties in reaching a satisfactory and workable outcome.
Operational Improvement
Operational improvement strategies can take many forms ranging from time and motion studies, full site reorganisations through to ‘just working harder’. However, many of these strategies are costly, time-consuming and impractical in the SME market – particularly with competing demands for scarce resources.
Once a new strategy is identified, changing existing procedures and processes is stressful - as is ensuring staff buy into the changes. The implementation of change requires a firm but sensitive approach that can backfire if not handled appropriately.
At Preston Advisory, operational improvement means working smarter within the constraints of the time and capital that management has. Measuring and quantifying current performance, identifying key drivers of success, isolating areas of wastage and motivating under-performing staff form the back-bone of longer term performance improvement.
At all stages, Preston Advisory can sit alongside management and guide the identification and implementation of operational improvements to ensure that a difficult process is rendered as smooth as possible.