Boosting business
A new company to the Bay is ready to help distressed businesses "turn things around".
photo QUINN O’CONNELL
Martin Macdonald is under no illusions about his methods.
“It's a prick of a process to go through,” he admits. “But then, when we’re done, the business is often saved, the people retain their jobs, and it's all going well. That's a fantastic feeling. There’s nothing better in life than doing this.”
Martin is CEO of Whiterock, a business advisory firm that specialises in helping medium and large-sized companies with annual turnovers in the millions navigate out of any tough financial waters they may have drifted into. In corporate lingo, they’re called a ‘distressed business’.
“But distressed businesses or turnarounds don’t necessarily mean failing or at death’s door,” Martin explains. “You can have a business that’s turning over $5 million a year but it’s not making any profit. That’s partially distressed as opposed to heavily distressed.”
Martin, who has over two decades of expertise in the field, likens it to a business losing steam. His job is to go in, identify the problems and come up with a plan to turn things around. Once called in, he’ll go through the business with a fine-toothed comb, talk to its people and also survey the outside world in which the company operates, all to get a thorough understanding of the bigger picture.
“I get a feel for all the different parts of the business and then I report back,” Martin says, before acknowledging that this initial meeting can sometimes be a little awkward.
“It’s a bit like a doctor telling somebody what they need to hear,” he says. “Often, it’s not what they want to hear. But it is what they need to hear.”
This process of stabilising or recovery and on to growth usually involves tough decisions, which are challenging to confront.
“I'm often dealing with the owners of a business. They’ve built it up from scratch and they're very passionate,” Martin says. “So I don't just go in, give turnaround advice and then leave.”
Instead, his approach is hands-on and sees him overseeing the implementation of the recovery plan over a three-to-six-month period. To do this he calls in a large network of specialist contracts, eg HR, health and safety, marketing, etc.
“It can take time,” he says. “But time is an interesting thing. Sometimes you don't have much time, and sometimes you do."
To that end, the best time for a business to get in touch is as it's approaching the cliff, rather than in the precious few seconds before falling off. For example, Whiterock is currently helping a company with a turnover of $220 million return to profitability.
“New Zealand is a country full of medium and large businesses,” Martin says. “And many need a hand. I'm ready to help.”
