TFG | Addressing the fundamental lack of available risk capital that can be applied quickly in a financially distressed business

Types of Turnarounds that Require Turnaround Finance

There are a wide variety of turnarounds that require financing. Examples of these have been included in Appendix 4 to this chapter.

It is important to stress that there are a very wide variety of techniques and the appendix only demonstrates the more common ones.

The illustrative list includes turnarounds that are affected using an insolvency procedure. This may strike some readers as surprising as they may believe that insolvency equates with “corporate death”.
However, there is a very long history of great business being bought out of insolvency and subsequently creating substantial value.

In recent years the insolvency legislation has changed to facilitate turnarounds. So too has the culture of banks and insolvency specialists. It could be validly argued that this change has been too limited. However, the rescue and turnaround culture is becoming far more sophisticated and progressive and it is likely that this will continue. We should expect very radical developments in this field.