Business Turnaround

Challenging times

For businesses that are facing difficulties, Strafin provides business turnaround services led by staff that have managed businesses and have business turnaround as their main objective. Let us do an independent review of your business; if we believe that we can help turnaround your business we have unique and deferred payment plans in place as we know that cash flow is a problem in these times. Unfortunately in some cases business are so financial distressed that they need to apply for Business Rescue in terms of Chapter 6 of the Companies Act. We are able to advise and assist with Business Rescue.

Case Study 1
An FMCG manufacturer was under financial pressure. They had good brands but the business was stagnant and losing money. We changed the way the business accounted for costs, separating variable and fixed costs to provide a clearer view of the contribution each brand was making to the business. The product ranges with the lowest margins were reviewed and either the pricing adjusted upwards or they were discontinued. The culling of some of the brands meant that resources could be allocated to the more profitable brands. The sales staff were briefed and told to promote and talk first about the brands with the highest contribution margin, which was a massive change for the company as most of the sales effort was spent on what everyone believed was the company’s bread and butter brand. The company recorded record profits within the year.
Case Study 2
We met with a client who was having problems with their financial manager and was battling with cash flow. We put in place financial controls, developed a cash flow forecasting process, restructured their accounting so that they could get product profitability statements and assisted with the recruitment of a new financial manager. The company’s cash flow problems were resolved and the businesses turnover is now over 3 times what it was.