Recovery plan: why seek the intervention of an interim manager?

A delicate and particularly stressful period, the deployment of a recovery plan is decisive to ensure the survival of a company in financial difficulty. In order to secure this key step, it can be very beneficial to call on an interim manager.

 

What is a recovery plan?

A recovery plan, also known as a continuation plan, is a procedure established in the context of a receivership. It aims to enable a company in difficulty to ensure its sustainability and overcome its cash flow problems.

This procedure meets certain regulatory requirements : it must be supervised by a judicial administrator and have been approved by the commercial court to ensure compliance with the terms of the plan.

If successful, the recovery plan will allow the company to stabilize its financial situation while honoring its debts and thus avoid judicial liquidation.

 

What are the steps of the recovery plan?

The recovery plan aims first of all to carry out a financial diagnosis. This is a Detailed analysis of the company’s economic situation. The objective of this preliminary step is, on the one hand, to identify precisely the causes of financial difficulties: Health crisis, financial mismanagement, declining sales, operational underperformance, difficult economic conditions, disputes…

This inventory also aims to define the actions to be taken to restore the situation. These measures can be of different natures: cost reduction, asset disposals, debt negotiation, optimisation of cash management, change in governance, organisational restructuring, redundancies, employment protection plan (PSE), closure of production sites or subsidiaries…

A schedule is then established to plan the gradual repayment of the company’s debts, after negotiating the deadlines with the creditors. It is also necessary to put in place Key Performance Indicators (KPIs), to monitor progress over time and assess the company’s economic growth (debt ratio, yield, turnover, cash flow, etc.).

 

Recovery plan: what are the advantages of interim management?

A complex and delicate mission, the implementation of a recovery plan is often a source of stress and profound upheavals. The lack of hindsight, resources, and emotional involvement can greatly complicate the management of an internal continuation plan. In such a context, it will be very wise to call on an interim manager, for several reasons:

• An external, neutral and experienced professional : The interim manager is a senior executive with a long career in positions of high responsibility. He is also specialized in a specific function (in the context of a recovery plan, it will be a question of calling on a CFO – Interim Chief Financial Officer) and a targeted sector of activity (Agri-food, luxury, Healthcare Pharmaceuticals, retail, Construction and construction…). Thanks to its neutral and impartial view, combined with his expertise and field experience acquired over the course of numerous missions in various contexts, he will be able to quickly identify the actions to be put in place to restore the situation and take strong decisions if necessary;
  
• Unparalleled interpersonal skills : expert in crisis management, the interim manager is endowed with incomparable composure, charisma and a sharp sense of leadership. He will be able to quickly mobilise the necessary players and support managers in the negotiation of debts in an effective manner.
• An emergency intervention : the interim manager is also able to intervene at short notice, within a very short period of time to respond to the urgency of the situation. From the moment he joins the company, he demonstrates Operational excellence assured. It generally lasts for a period ranging from 6 to 18 months;
• A results-oriented methodology : calling on an interim manager to steer a recovery plan is also the guarantee of obtaining rapid, tangible results, within the deadlines set in advance.

 

Would you like to request the intervention of an interim manager for the deployment of a recovery plan?

Our interim management company WAYDEN is able to mobilize, even in emergencies and throughout France, a seasoned interim CFO (Chief Financial Officer) with a career of 15 to 25 years and whose profile, expertise and interpersonal skills are tailored to your needs. He will be able to quickly identify the causes of the economic difficulties encountered and propose concrete and effective actions to overcome them and to guarantee the sustainability and competitiveness of your company.