Phoenix Management Services Crisis/Turnaround Management
Phoenix Management Services

Crisis/Turnaround Management

Phoenix’s strategy for improving the performance of a company in transition is to address the underlying operational challenges confronting the business.

Phoenix looks past the balance sheet to find practical solutions to improve profitability and enhance liquidity while developing and executing a turnaround plan capable of delivering long-term, sustainable results. Our professionals operate as an extension of our client’s management team, providing hands-on industry and turnaround experience and constant guidance that allows our clients to more effectively manage their resources.

A main benefit of Phoenix’s involvement is the swift addition of professionals with years of leadership experience to our clients’ management teams. Phoenix’s professionals provide the expertise required to affect the fundamental changes necessary to improve operating cash flow and create long-term, sustainable value in our client’s businesses.

While each client situation is unique, some of the areas where we will generally focus our energy and expertise include:

  • Short and long-term strategic planning
  • Evaluation and analysis of alternatives
  • Reducing sales, general and administrative costs
  • Reducing manufacturing costs
  • Negotiating more favorable sourcing arrangements
  • Negotiating more favorable credit agreements
  • Expanding sales and identifying other revenue channels and activities
  • Identifying alternative distribution channels
  • Reducing manufacturing bottlenecks
  • Improving inventory turns
  • Improving logistics

Phoenix also enlists the support of our clients’ shareholders by promoting open communication. We have a strong track record of developing credible financial and operational plans and achieving (and often surpassing) the initial goals and expectations of our engagements.

Our leadership of the turnaround process provides shareholders with the confidence that stated goals can be accomplished and that the value of our clients’ company is maintained and enhanced.

Crisis Management

Phoenix practices crisis management as an alternative to bankruptcy. We view legal protection as a last resort – one that is best used as a tool as part of a carefully designed and well-orchestrated recovery strategy. Our crisis management services aid in quickly restoring order to a chaotic situation and maintaining and enhancing the value of our clients’ company.

Few firms have the ability to place experienced and decisive crisis managers on-site as swiftly as Phoenix. Once on-site, Phoenix’s professionals begin to assist our clients with creditor and lender negotiations and to spearhead initiatives that help sustain an organization.

The luxury of time is rarely on the side of our clients. Our experience and credibility enable us to rapidly derive financial flexibility and additional planning time from our clients’ constituents. Working in conjunction with management, we move quickly to conduct the critical operational and financial assessment that forms the basis of a comprehensive turnaround plan.

The Role of the Chief Restructuring Officer (“CRO”)

If necessary, Phoenix has the ability to rapidly provide on-site guidance and support to its clients through a Chief Restructuring Officer (CRO). Such an individual will provide our clients with immediate, hands-on, on-site leadership in order to serve as a focal point for internal decision making, and external communication. There are instances where the installation of a CRO will help bring stability to relationships with creditors and other constituencies, thereby enabling our clients to move forward expediently with their business plans. This role is increasingly necessary given the complexities of today’s investor/lender structures with participants demanding a greater emphasis of restructuring actions in rapid time frames. Phoenix fills the CRO role both in conjunction with the existing/incumbent CEO and in circumstances where the CEO is being replaced. The skills required of the CRO are very different from those of a CEO and often require the ability to rebuild credibility with various creditor constituents. Phoenix professionals frequently serve as CRO - bringing immediate value to what is often a difficult situation.

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