Financial Turnarounds: Preserving Value

Chapter 6. Preventive Medicine for Healthy Companies

Virtually all the lessons that the case-study companies had to learn the hard way also apply to healthy companies. Most of the problems stemmed from a lack of attention to business basics. That’s exactly why financial officers of sound companies need to keep a sharp eye on the fundamentals, such as business strategies, capital structure, KPIs, controls, and cash management.

In “Turnaround Management Every Day,” John O. Whitney points out that turnarounds are not limited to financially troubled companies. To the contrary, turnarounds occur regularly in product lines, divisions, and subsidiaries within most large corporations. Whitney believes that many of the methods that turnaround managers use ...