When should a South African business bring in a turnaround advisor?
CJ Dicks · South Africa · Turnaround
The right moment is earlier than most founders think. By the time every option has been exhausted, the useful work is smaller and the pressure is higher.
A turnaround advisor is worth bringing in when the leadership team can see repeated symptoms but cannot agree on the cause: missed numbers, cash pressure, delivery slippage, creditor tension, leadership fatigue or a board conversation that keeps being deferred.
The work starts with diagnosis. Is the business dealing with a temporary execution problem, a structural market issue, a margin problem, an ownership dispute or a leadership bottleneck? The response changes depending on the answer.
Formal business rescue exists for financially distressed companies under the Companies Act, but not every distressed company should enter formal proceedings. An independent assessment before that step can preserve more options.
Sources and context
- Companies Act 71 of 2008
- CIPC business rescue information
- IoDSA King IV Report