When a company enters a difficult phase, management often focuses immediately on profitability.
But during a turnaround, there is something even more urgent:
Liquidity.
A company can survive temporary losses.
It cannot survive without cash.
This is why the first phase of any restructuring should focus on understanding, protecting and controlling liquidity.
Know the real cash position.
Management needs short-term cash-flow visibility, not only annual budgets.
Protect working capital.
Receivables, inventory and supplier terms can release—or absorb—significant amounts of cash.
Prioritise payments.
During a turnaround, every euro must have a purpose. Critical suppliers, employees and business continuity come first.
Stop unnecessary cash leakage.
Non-essential investments and expenses should be reviewed immediately.
Negotiate before the crisis becomes urgent.
Banks, creditors, suppliers and investors are easier to engage while the company still has alternatives.
Profitability remains fundamental, but restoring margins takes time.
Liquidity creates that time.
At VIGGOCAPITAL, we approach turnaround situations with a simple principle:
First stabilise the cash. Then restructure the business. Then rebuild value.
Because in a turnaround, liquidity is not just a financial indicator.
It is the oxygen that keeps the company alive while transformation takes place.
VIGGOCAPITAL
Corporate Finance • M&A • Restructuring • Capital Raising
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