AI-Accelerated Turnaround

Figure 1: AI Turnaround Toolkit – four application fields of AI-supported crisis diagnostics

The toolkit is deployed in three consecutive steps.

Step 1: Data access and system integration

In a structured onboarding process, the company’s relevant data sources are opened up: ERP systems, controlling data, supplier contracts, bank documents and CRM data. Data integration is the critical success factor – and the step that classic analyses most frequently underestimate. The result is a consolidated data base on which all four AI modules operate.

Step 2: Parallel AI analysis

The heart of step 2 is the parallel execution of three analysis strands that together form the Automated Restructuring Intelligence – the consolidated AI-supported basis for decision-making that brings together loss sources, supplier risks and liquidity scenarios in an integrated picture. The automated P&L analysis examines the earnings structure and loss sources across channels – from logistics through procurement to administration – and prioritises fields of action by quantified earnings lever. The AI-supported supplier screening assesses the entire supplier portfolio by financial stability, compliance and cost-arbitrage potential and systematically identifies consolidation and renegotiation opportunities. The AI-supported cash-flow forecasts model liquidity scenarios on a weekly basis and identify bottlenecks up to three months earlier than manual approaches – a structural advantage for bank negotiations and investor communication.

Figure 2: Illustrative example of the parallel AI analysis – P&L diagnosis, supplier screening and cash-flow forecast together form the Automated Restructuring Intelligence

Step 3: Decision support and derivation of measures

The results of the three analysis strands are translated into a prioritised turnaround roadmap that structures fields of action, measure options and implementation sequence for management. At the centre is the implementation and orchestration of the Automated Restructuring Intelligence as a permanent management instrument: it delivers not only a one-off diagnosis, but remains active as a continuous basis for decision-making – with continuously updated liquidity forecasts, supplier risk assessments and P&L analyses. FOSTEC & Company supports the implementation with operational turnaround expertise and ensures that analytical insights are translated into concrete measures and communicated defensibly towards banks, investors and creditors.

Results and impact

The three analysis strands, automated P&L analysis, supplier screening and cash-flow forecasts, in combination create something that classic turnaround diagnostics structurally cannot deliver: a complete, fact-based basis for decision-making within a period that shortens months to weeks. Management, PE investors and financing partners thereby receive not individual analysis results, but a consolidated basis on which negotiations can be conducted, measures prioritised and communication shaped – before the options for action narrow further.

The decisive value lies not in the quality of the analysis alone, but in the point at which it is available, and in the ability to translate it into operational consequences. The prioritised turnaround roadmap and the continuously active Automated Restructuring Intelligence together create the precondition for earlier ability to act: greater negotiating room towards banks and creditors, more time for operational measures and a more robust starting position for communication with investors – in a phase in which every additional week counts.

Position within the service portfolio

The Turnaround & Restructuring portfolio brings together the central levers for stabilising, restructuring and repositioning companies in critical situations. Optimisation takes place along clearly defined fields of action:

• Commerce & Digital Performance Diagnostic
• Rapid Profit & Margin Recovery
• AI-Accelerated Turnaround & Performance
• Commerce & Channel Restructuring
• Crisis Operating Model & Structural Cost Reset
• Stakeholder & Investor Communication
• Value Creation & Exit Recovery

Find out in a personal introductory conversation how FOSTEC & Company deploys the AI Turnaround Toolkit in your situation – get in touch with us.