Quick question - what do restructuring & turnaround consultants do in general (at A&M or Alix). I understand that 13w is part of the job but I see a couple of services including transaction service, performance improvement, etc. I guess they have something to do with transaction DD, EBITDA, working capital, etc. anything else? Thanks!

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Turnaround and restructuring is a different service line to performance improvement, transaction services etc.

Restructuring is usually a bankruptcy. They need administrators to take them the legal process. In the US, one of the main questions you need to determine is whether there is a viable future for the business - if yes, it’s a chapter 11 (company emerges); if no, it’s a chapter 7 (company liquidates).

What plunges a company into distress (and end up in bankruptcy), is lack of cash. So, you need to know the cash position of a company that is struggling so that you can determine 1) how much capital injection is needed; and 2) by when it is needed.

Rolling 100 days of cash visibility is a good amount of time to forecast and manage the business, hence the “13 week forecast”. This is because payment terms for vendors are typically 90 days.

There are lots of other things, but this post is long enough. I’m not actually in our TRS group so someone should correct me if I’m wrong.

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Actualy, can someone talk more detailes about 13w consulting? I know what it is, but do not really know how consultants support in its calulation

13 week forecast. It’s financial modeling akin to investment banking.

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