The business model and strategy are key tools for asset recovery. In conditions of financial instability and operational stress, the primary task is not only to maintain current operations but also to develop a realistic business model capable of functioning under changed circumstances.

The business model defines how the company creates and retains value, while the strategy outlines how it can restore stability and return to growth. As part of crisis management, we systematically assess the existing model, reconfigure it for current realities, and develop scenarios and an action plan aimed at restoring control and asset value.

CRISIS MANAGEMENT Business Model & turnaround Strategy

5. Implementation Plan for the Strategy

Goal: To ensure controlled and consistent execution of the chosen strategy within the approved plan.

Contents:

• Roadmap with clear stages, deadlines, and areas of responsibility;
• Key performance indicators for each area (financial, operational, organizational);
• Conditions for course correction in case of deviation from the baseline scenario;
• Foundations for monitoring implementation (internally or by the creditor).

Result: A control tool for tracking the progress of anti-crisis measures, ensuring transparency of actions for all stakeholders.

4. Development of Turnaround Scenarios and Strategy

Goal: To identify the minimally viable business configuration that ensures manageability and prospects for recovery.

Methodology:

• Defining key components capable of sustaining operational activity (business core).
• Developing a target structure: product, customer, channel, team, financial model.
• Calculating allowable operational costs and required resources.

Result: A restructured business model aligned with current market conditions and minimum economic sustainability requirements.

Goal: To formulate realistic management scenarios considering resource, time, and external constraints.

Scenario options:

• Basic (stabilization and maintaining current position);
• Optimization (partial transformation, achieving positive cash flow);
• Investment / Exit (preparation for deal, sale, consolidation).

Each scenario includes:

• Key management assumptions;
• Calculations of main metrics (revenue, EBITDA, debt coverage ratio, etc.);
• Risk and sensitivity assessment.

Result: A scenario-based decision-making approach and a documented strategy for restoring business value.

3. Forming a Sustainable Business Model (MVP)

2. Financial Diagnosis of the Business Model

Goal: To obtain an objective understanding of the actual logic of the business operation and the sources of value creation or loss.

This stage includes:

• Structured analysis of the business model: customers, product, value chain, sales channels, revenue structure.
• Identification of inefficient or unprofitable areas.
• Comparison of the current operational model with market conditions, resource constraints, and legal risks.

Result: A map of the functioning business model highlighting vulnerable and resilient components.

Goal: To determine the financial viability of the current model and its ability to generate positive operational or free cash flow.

The analysis includes:

• Unit economics across key business lines and customer segments.
• Calculation of margin levels, breakeven points, and operating leverage.
• Analysis of fixed and variable cost structure, including debts and liabilities.
• Assessment of revenue dependency on external factors.

Result: A transparent and detailed economic model suitable for managerial and credit decision-making.

1. Assessment of the Current Business Model