When a company that has experienced a period of poor performance moves into a period of a financial recovery, it’s called a turnaround. A turnaround may also refer to the recovery of a nation or region’s economy after a period of recession or stagnation.
A Turnaround is a process dedicated to corporate renewal. It uses analysis and planning to save troubled companies and return them to solvency, and to identify the reasons for failing performance in the market, and rectify them. Turnaround management involves management review, root failure causes analysis, and SWOT analysis to determine why the company is failing. Once analysis is completed, a long term strategic plan and restructuring plan are created. These plans may or may not involve a bankruptcy filing. Once approved, turnaround professionals begin to implement the plan, continually reviewing its progress and make changes to the plan as needed to ensure the company returns to solvency.
