Operational Turnaround

Operational turnarounds usually mean a business is underperforming. Whether this is due to managerial, operating or market factors, or issues like technology changes or geo-political events, speed of action is crucial to addressing the challenges successfully.

Chris Coley

Partner

KPMG in the UK

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How KPMG can help

Our highly experienced Operational Turnaround team combines finance, operations and restructuring expertise to support clients through complex challenges.

We focus on providing solutions that will positively impact your businesses, including:

Cash and liquidity management

Establishing visibility over cash flow and liquidity position to inform decisions that will preserve and generate liquidity
Developing cash flow forecasting models that focus on critical cash drivers
Harnessing existing ERP systems to develop efficient long-term solutions

Working capital management and optimisation

Developing capital plans that optimise working capital levels in the immediate term
Prioritising key customers, suppliers and inventory holdings to avoid disruption to business operations
Focusing on accounts receivables and supplier payment while assessing inventory holding levels

Cost base rationalisation and optimisation (including organisation structures)

Assisting management to right-size the business’s cost base
Creating a fact-based view of how the cost base is structured
Identifying opportunities for cost rationalisation
Benchmarking the cost base to industry averages or peer group
Analysing how profit margins have evolved and why

Customer, product and market profitability

Conducting rapid, data-driven product and customer profitability reviews
Identifying weaknesses in ‘gross margin’ thinking, and assessing the true drivers of profitability
Evaluating product profitability across customers and regions to inform resourcing and production decisions

Operating process optimisation

Reviewing operating processes to drive efficiency, eliminate cost leakage and maximise asset utilisation
Providing challenge to assess how the operating model supports the business’s growth plans
Supporting management to redesign the operating model
Assessing existing technology systems and identifying digitally-driven efficiency opportunities

Operating footprint optimisation

Assessing productivity and profitability of operating sites and establishing required standards
Identifying locations for improvement programmes and or consolidation
Reviewing the operating footprint to identify high-cost areas and opportunities for rationalisation
Analysing manufacturing activity and operational resources requirements per production line
Quantifying saturation levels of each location
Identifying bottlenecks and capacity constraints in the manufacturing processes