Quantitative turnaround viability assessment
Turnaround business case
A turnaround situation is deemed viable when a credible turnaround plan can demonstrate that a sustainable recovery based on a viable and defensible turnaround strategy can be achieved.
Technically, it should demonstrate that the impact on the Z-Score of the distressed company will be such that it will be returned to the Healthy Zone, as per the example below.
View the turnaround stages diagram
Irrespective of the impact of the Z-Score, individual financial stakeholders want to see that their lending is safe, or whether support of the turnaround will yield a return on investment.
Viability assessment is underpinned by rigorous financial analysis and detailed business modeling.