When cash flow from operations is negative, the company sees its available cash systematically decrease, whether to pay wages, providers, taxes, social charges, not to mention lenders and shareholders. In this situation, a turnaround or company recovery is required.

This context, worrysome, requires a specific mindset with which management, when it has only ever had to manage growth, is not familiar.

MBA Capital O&R strongly recommends to anticipate, that it to call upon company turnaround specialists without waiting for cash to be too depleted, as a situation of suspension of payments if not synonymous to company liquidation nonetheless reduces the options as well as the timeline.

Through its experience of numerous turnarounds, both in CEO and operational advisor position, MBA Capital O&R understands the urgency linked to these situations and acts accordingly alongside management in ordre to maintain a going concern.

MBA Capital O&R answers in a specific and adapted way to the questions : What to improve ? What to stop ? How to finance the return to positive cash flow from operations ? How to maintain the going concern ?

It implies a detailed analysis of the business model and an important cash management subject (historical cash flows, short-term forecast, putting cash collections and disbursements under stress).

The missions are tailor-made and include the following phases :

  • A diagnosis within 6 to 8 weeks resulting in an action plan of practical measures, quantified and with a defined calendar, as well as a financing and cash plan
  • In parallel, cash flow are put under close supervision
  • Between the 2nd and 3rd month assistance to the negotiation of the necessary funding needed to get back to positive cash flow from operations
  • Assistance to the implementation of the action plan until its completion is certain

  • Contexts of negative cash flow from operations are worrysome
  • Our strong recommendation : bring in turnaround specialists early
  • We understand the urgency of these situations and adapt our mission accordingly
  • We deliver an implementable and achievable action plan
  • Pragmatic and quantified measures, with a defined calendar
  • We define the funding necessary to get back to positive operational cash flow
  • We advise you in the negotiation of this funding
  • We assist you in the implementation of the measures until completion

MBA Capital recommends to bring in turnaround specialists without waiting for the situation to become too critical.