How You Can Turnaround Your European Business
CEOs and CFOs often feel like they are following in the footsteps of Don Quixote when they try to restructure business operations in Europe. In theory, the formula for a restructuring in Europe is the same as the US - control cash, adjust pricing, renegotiate contracts, reduce employees, eliminate poorly performing divisions or products, accelerate collection efforts and restructure the balance sheet. In practice, implementing those actions in Europe can seem like an impossible dream. Too often, European management or advisors will raise an unending series of roadblocks and reasons as to why they cannot implement change. To complicate matters, when they do decide to act, they often lack the urgency demanded by the deteriorating situation. A half-hearted or botched attempt at a turnaround can further cripple the business, alienate customers and demoralize employees. To create lasting change in a distressed potranseuropean business, turnaround efforts must go beyond goal setting and...