The Role of the Customer in Turnarounds

Abstract

This article takes a look at how the customer can be the key to the successful turnaround of a distressed business in any category. It presents the argument that one reason so little attention is paid to the customers is that they are often seen as the reason a business slips into a distressed state, rather than the cure. In reality, customer defection is a symptom of distress, not its cause. The article presents primary examples of successful turnarounds that relied on the customer from the automotive aftermarket and a distributor of machine tools. <b>TOPICS:</b>Private equity, financial crises and financial market history, technical analysis, manager selection