The term “turnaround management” may bring to mind the corporate white knight who rides in to save the day and get a business back on track. An element of truth gives it a certain romantic appeal.
But the term more accurately refers to that point after a company has filed for bankruptcy and has entered receivership. In other words… creek… no paddle.
Cash flow and prioritizing payables
Cash is King (thank you Luis Pereiro). You can have an unprofitable company, so long as you are able to meet your cash obligations. You can have the best company in the world with high profits, but if you cannot meet your payments the company will fail. Continue reading