Turnaround management is the process of identifying, diagnosing, and addressing the problems within a company or business unit that is underperforming or in financial distress, with the goal of restoring it to a stable and profitable state. This process may involve a variety of different strategies, including cost-cutting, changes in management, debt restructuring, and divestitures.
The key steps in turnaround management typically include:
- Identifying and assessing the problems within the company, such as financial distress, operational inefficiencies, or underperforming business units
- Developing and implementing a plan to address the problems, such as cost cutting, debt restructuring, or divestitures
- Managing the implementation of the plan, including coordinating with other stakeholders such as creditors, employees, and customers
- Monitoring and adjusting the plan as needed to ensure that the company is on track to return to stability and profitability
- Exiting the company once it is stable and profitable again
Turnaround management requires a wide range of skills, including financial analysis, strategic planning, crisis management, and change management. It also requires strong leadership, negotiation skills, and the ability to navigate the legal and regulatory environment.
Turnaround management can be a complex and challenging process, but when done successfully, it can lead to the revitalization of a struggling company and ultimately improve returns for shareholders, stakeholders, and creditors.
For over 40 years, EDS’ Turnaround Management Systems® Group has skillfully guided and judiciously represented financial institutions, secured creditors, private equity, attorneys and law firms, investors, and myriad other stakeholders in handling their distressed assets and special situations Turnaround Management needs.
From National Priority List Superfund Sites—to a Decommissioned Nuclear-Powered Aircraft Carrier—to the Pencils-on-the-Desk, we handle it all, and we have successfully engineered billions of dollars in turnarounds and restructurings for our global clientele.
The impact of complex and contentious litigation in many turnaround situations can complicate, if not destroy, a creditor’s position if not handled properly. Non-performing, distressed, and troubled accounts present many pressing challenges. When problematic accounts facing operational and/or financial challenges occur, our experienced—street-savvy—proficient transitional and Turnaround Management teams employ creative—proven solutions that often reverse and cure these situations immediately.
Our award-winning Turnaround Management services have earned us the distinction of being the only Court-Appointed Receiver in the country that the United States Environmental Protection Agency (USEPA) allows to provide such services on active Superfund Sites.
We are pleased to serve as Court-Appointed Keepers for the U.S. Marshals Service for federal court seizures of assets under admiralty jurisdiction.
We are very proud of these distinctions and believe that it and our body of work for such multinational giants as Merck, Pfizer, Mellon, Signal Capital, Ally Capital, and GE speak to our Turnaround Management expertise and confidence in us.
EDS’s unsurpassed nationwide Turnaround Management capabilities, decades of state and federal Court-Appointed Fiduciary experience, and unimpeachable credibility afford it an unparalleled opportunity to serve as a trusted Turnaround Manager.
When appropriate, EDS seeks to partner with creditors, owners, managers, investors, and others to achieve the best outcome for all stakeholders. These efforts often lead to exceptional investment opportunities for EDS’ Distressed Assets Private-Equity Investment Partners.
EDS’s unparalleled Turnaround Management and Restructuring expertise is recognized and appreciated in boardrooms and courtrooms worldwide.
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