Anyone who has been involved in the turnaround of a business will appreciate the magnitude of the project facing management. Expert advice and depth of experience are essential in managing a successful restructure, which can often take many months, or even years to execute.
Although traditionally the domain of external advisors, managing the turnaround of a business is often more effectively performed from within the organization itself, and hence the emergence of Chief Restructuring Officers (CROs).
Historically there have been few alternatives available to companies in financial distress, the most common being a formal insolvency process, which often results in little or no benefit to either the business or its stakeholders. The role of the CRO provides management with the opportunity to appoint a professional to take charge of developing and / or implementing the restructure plan whilst allowing management, to concentrate on managing the core business.
The main objectives of a CRO are to: