When restructuring a company in difficulty for which it has assumed the debts, a turnaround fund can call on an interim manager to secure this complex process.

Here are some of the benefits of interim management for turnaround funds.

What is a turnaround fund?

A company that is experiencing significant financial difficulties can, in order to recover, call on a turnaround fund, also known as turnaround capital.

It is an investment fund specialising in turnaround operations for companies in critical situations. The latter thus agrees to take on the company’s debts: he faces higher risks, but can also expect to receive significant profits.

Calling on a turnaround fund allows the company to benefit from a capital injection, to overcome this delicate phase, to avoid judicial liquidation and to relaunch its activity.

The turnaround capital fund first carries out an in-depth audit to analyse the company’s financial situation. If the diagnosis confirms the viability of the project, the turnaround fund then buys shares in the company, in exchange for which it participates in its recovery. Once the company is back on its feet, he can then sell his shares at a profit.

The benefits of interim management for turnaround funds

The interim manager is a professional with a long career of 15 to 25 years. Experienced in the Managing crises and emergency situations in a wide variety of contexts and environments, he has cutting-edge sectoral expertise, but also many human, relational and managerial qualities. He carries out a mission generally ranging from 6 to 18 months, whose problems, challenges and objectives have been defined in advance.

Thanks to his neutral view, his know-how and his interpersonal skills, he provides adapted solutions, focused on obtaining tangible results, within the given deadlines.

In the context of the restructuring of a financially weakened company, the turnaround fund may call on an interim manager who is specialised in the targeted company’s sector of activity and an expert in restructuring assignments.

Using an interim manager as a turnaround fund makes it possible to:

Securing the restructuring project,
Ensure the proper implementation of the restructuring plan,
(Re)mobilise the teams of the weakened company and support them at each stage of the turnaround project,
Acting as a link between employees, the company’s management and the turnaround capital fund,
Benefit from a high-flying leader, with valuable skills (relational intelligence, diplomacy, ability to resolve conflicts, resistance to stress, audacity, etc.),
Ensure the resumption of activity on a solid basis,
Identify the causes of the company’s underperformance and implement sustainable improvement actions to prevent future risks,
Sustainably strengthen the company’s competitiveness and stability,
…

Are you looking for an interim manager for your turnaround fund?

WAYDEN provides you with the expertise of thousands of experienced interim managers from multiple sectors of activity who are able to successfully support you in your corporate restructuring efforts.