Struggling Business Turnarounds
Many small business owners rush to apply short-term fixes rather than diagnosing the real problem.
SME companies can find themselves in financial distress even under the most buoyant economic conditions. Underlying problems in core business models are intensified during difficult economic times.
A common solution is to borrow or refinance their way out of trouble. Whilst a refinance is helpful for placating hungry creditors now, it does little to guarantee long-term cash flows and operational stability.
Specialist insolvency practitioners say it is the identification of this flaw and development of a turnaround plan to address this that is critical to long-term prosperity.
An effective turnaround involves a combination of short-term and long-term decision making, which must be executed quickly and communicated clearly.
Any turnaround requires time. For SME’s who are in need of restructure, early consultation with an expert is vital. That first consultation will often be free.
The solution may be an informal workout or through a formal insolvency process, such as Voluntary Administration with a Deed of Company Arrangement proposal (potentially funded by the owners).
AccttWeb
Hot Issues
- Will a shareholders agreement protect a business from a family law dispute?
- ATO crackdown on profit restructuring leading to higher tax bills: RSM
- Super balance not a priority for young Aussies, SMC reports
- When to Update Your Business Trading Terms
- Support for rebuilding after natural disasters
- Are you ready for Payday superannuation?
- Calculate your costs to start a business
- Most Reliable Car Brands in 2026
- Payday super part 2: not quite ‘all systems go’
- Privacy Compliance Sweep 2026: Is Your Business Ready?
- 6 ways to improve your business plan
- ‘Looking like a rough start’: SMEs set to feel the pinch as CPI spikes
- Student loans debt update
- New SMSF education directions
- Accountants must keep ‘watchful eye’ on financial abuse
- Rare and vanishing: Animals That May Go Extinct Soon
- What is a Commercial Lease?
- 8 tips to improve your online sales
- ATO cracking down on tax dodgers trying to leave the country
- Digital Assets You Forgot You Own (and Why They Still Matter at Tax Time)
- ‘Not insurmountable’: What accountants need to know ahead of Payday Super
- Heading overseas? Centrelink and the ATO might need to know
- The ATO’s new draft rules could change your holiday home tax claims
- Which country produces the most electricity annually?
- Restructuring Family Businesses: From Partnership to Limited Company
- Choose the right business structure step-by-step guide
- ATO’s holiday home owner tax changes spur taxpayers to be ‘wary and proactive’
- Payday Super part 1: understanding the new law
- A refresher on Medicare levy and Medicare levy surcharge.