Igor Zaks, CFA, President of Tenzor Ltd. recently updated a presentation on operational restructuring and turnaround that brings together several themes I have worked on over the years: working-capital diagnostics, supply-chain dependencies, business model redesign, and the growing role of asset-based and structured financing in distressed situations. The core argument is simple: in many restructurings, liquidity is necessary, but understanding the business model and the wider supply chain is what determines whether recovery is possible
Too many turnaround situations are approached primarily as financing problems. Cash matters, but funding alone rarely solves the underlying issue.
A proper restructuring diagnosis starts with more basic questions: Why does the business exist? Where does it sit in the industry structure? Which stakeholders genuinely need it to survive? And is the business model itself still viable?
In the presentation, I set out a practical framework built around five elements: control, capability, credibility, clarity, and co-operation. Those factors often determine whether a turnaround plan has any chance of success.
I also look at the operational side of distress:
- receivables, payables, and inventory as the first place where deeper problems often appear;
- the risk of relying too heavily on ratios without understanding the underlying composition;
- the danger of over-focusing on EBITDA while underinvesting in CAPEX, R&D, and people;
- and the need, in some cases, to redesign the model itself rather than simply cut costs.
The presentation also touches on the increasing relevance of asset-based lending, receivables finance, and supply-chain-based funding tools in turnaround situations. These approaches can provide time and flexibility, but only when grounded in a proper understanding of the underlying operations and asset quality.
The bottom line is that liquidity buys time, not solutions. Turnaround success usually depends on combining financial restructuring with operational realism and a clear view of the supply chain around the business.