Hong Kong – July 29, 2024 – Tactical Management,
Interviewer: As the founding partner of Tactical Management, an active Hong Kong-based private equity firm that specializes in distressed real estate, non-performing loans, and underperforming businesses, Dr. Nagel, could you kindly describe the elements of a turnaround process and how they work?
Dr. Raphael Nagel: Of sure, I’d be glad to talk about this. A turnaround, sometimes referred to as restructuring, is a methodical procedure designed to restore financial stability to a financially troubled business. Restoring profitability and securing the company’s long-term survival are the main objectives. This frequently entails taking extreme steps, such laying off employees, selling corporate divisions, or fundamentally altering the company’s business plan.
Interviewer: In practice, how does one go about initiating such a turnaround process?
Dr. Raphael Nagel: Every turnaround process begins with a thorough examination of the business’s existing state. We take a detailed look at the company’s finances, marketing plan, internal structure, and customer interactions. This analysis serves as the foundation for a comprehensive plan that specifies particular actions to make things better.
Interviewer: Could you give some specific instances or case studies that demonstrate a successful turnaround from your work at Tactical Management?
Dr. Raphael Nagel: Of course. One noteworthy instance is a project we completed in Southeast Asia a few years ago. It concerned a mid-sized manufacturing company that had become insolvent as a result of ineffective management choices and an antiquated production system. To determine the main problems, we conducted a thorough financial analysis as our first step.
We made the decision to sell a portion of the business to raise much-needed funds. In order to boost productivity, we simultaneously put strong cost controls in place and enhanced our production procedures. We also brought in specialists with specialized industry knowledge and reorganized the management team. We succeeded in bringing the business back to profitability in less than two years, and we ultimately sold it to a strategic investor.
Interviewer: In a process like this, what part does communication play?
Dr. Raphael Nagel: It is essential to communicate. Employees, clients, and suppliers are among the stakeholders who must be involved in the process and informed about the issue and the intended actions. Transparency makes sure that everyone is pulling in the same direction and fosters trust. We collaborated with a retail company going through a similar difficulty in another project in Europe. We won over the trust of our staff members and inspired them to take an active role in the turnaround by keeping lines of communication open and frequent and included them in decision-making processes.
Interviewer: What other elements do you think are essential for a turnaround to be successful?
Dr. Raphael Nagel: It is imperative to execute with discipline and consistency. Depending on the business and circumstances, the turnaround process might take a variety of lengths of time, but the steps must be followed precisely and consistently. Bringing in outside consultants or specialists who can provide a specialized knowledge and objective viewpoint is frequently advantageous. We at Tactical Management rely on a blend of strategic insight, practical solutions, and in-depth analysis.
Interviewer: I am grateful for your observations, Dr. Nagel. Finally, what guidance would you provide business owners that are experiencing a financial crisis?
Dr. Raphael Nagel: You must take immediate action and don’t be afraid to ask for outside assistance. The first stage is to conduct an impartial and thorough investigation of the circumstances. Next, specific actions need to be done and carried out regularly. It is equally crucial to involve all stakeholders and to communicate with them. Even amid difficult circumstances, it is feasible to guide a business back to success with the correct personnel and a well-defined plan.
Interviewer: I am really grateful for this thoughtful conversation, Dr. Nagel.
Dr. Raphael Nagel: I enjoyed it. I’m grateful.
Contact information:
Tactical Management Ltd.
Dr. Raphael Nagel (LL.M.)
info@tcaticalmanagement.ae
www.tacticalmanagement.ae
LinkedIn
info@tacticalmanagement.ae