Turnaround

Last Updated: Jun 7, 2019

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A turnaround occurs when a company takes successful steps to correct a period of deteriorating financial performance.

A turnaround is the financial recovery of a company that has been performing poorly for an extended time. To effect a turnaround, a company must acknowledge and identify its problems, consider changes in management, and develop and implement a problem-solving strategy. In some cases, the best strategy may be to cut losses by liquidating the company rather than trying to turn it around.

A turnaround refers to steady, positive movement experienced after a significant period of performance decline. Turnarounds can be experienced in a particular business, a larger-scale economy, a particular market or an individual’s financial situation.