Turnaround Services

Lender and debtor advisory, in or out of court

Helping Lenders Reduce Risk and Debtors Access Capital

Particularly in dynamic business environments — with fluctuations in interest rates and market conditions — both lenders and creditors can see rapid changes in their business prospects and financial condition. Our Turnaround Services can support organizations on either side of the ledger, inside or outside the courtroom, as they seek to mitigate exposure to lending risk or solidify cost-effective access to capital. 

For lenders, we work with you to identify risks in your lending facility, including those posed by the actual or available collateral of your borrowers. Further, we make recommendations for mitigating exposure to loss risk — informed by assessment of industry conditions, competitive environment, and borrowers’ business plans, conditions and projections. 

Our offering includes:
  • 3-statement modeling
  • 13-week cash flow modeling
  • Understanding of adjustments to EBITDA
  • Working capital inputs
  • Credit agreement review for covenants and covenant calculation modeling 
  • Collateral availability and type (borrowing bases)
  • Understanding of lien types and positions
  • Understanding of types of debt (asset-based, term, factoring, cash-flow, equipment and machinery, merchant cash advances, and others)
  • Research into industry-specific market drivers, competitive landscapes, risks and opportunities
  • Budget and business plan review
  • Budget to actual variance analysis

A debtor in a distressed business is often forced to drastically cut costs and reengineer their balance sheet. While that may buy time, an operational turnaround can help fix the problem. Spending less money while simultaneously improving operating performance and enhancing liquidity is hard. We work with debtors to create a plan to fix the underlying operational issues and improve overall performance whether by increasing sales, reducing lead times, optimizing inventory, or reducing backlog, all with an eye to improving profitability and cash flow.

We can help you with:
  • Operational Health Assessment – identifying gaps in performance
  • Profitability Analysis – rationalizing products, services, SKUs and customers
  • Reengineering Review – identifying, eliminating, consolidating, migrating and automating actions
  • Value Creation Planning – creating a roadmap for large scale cost reduction as well as margin and profit growth initiatives
  • Business Architecture, Organizational Redesign & Process Optimization – reimagining how business is done and structured, and utilizing methods like LEAN Six Sigma to achieve breakthrough performance
Frequently, the need for a financial restructuring is either caused or exacerbated by operational issues in the company. Addressing both the financial and operational issues reduces the risk of the company falling deeper into distress. 

Companies that are stressed, distressed, or contemplating bankruptcy can benefit from the support of knowledgeable financial advisors.

Business Restructuring and Turnaround Insights

Explore our most recent resources and thought leadership.

  • Industry
  • Healthcare
  • Natural Resources
  • Private Equity
  • Retail & Consumer Products
  • Technology

Stay current with our latest business restructuring and turnaround insights.

Meet our Turnaround Services Leader

  • Professional Headshot of Mark Houston

    Mark Houston

    Managing Director; Financial Institutions & Specialty Finance National Practice Leader

Restructuring and turnaround services as well as operational value creation services within the United States are offered through BDO Consulting Group, LLC, a separate legal entity and affiliated company of BDO USA, LLP, a Delaware limited liability partnership and national professional services firm. Certain restructuring and turnaround services may not be available to attest clients of BDO USA under the rules and regulations of public accounting. 

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