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4nd Financial Community Update
Investor Relations in Turnaround Situations
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The fourth in the series of “Financial Community Update”
had as its focus the theme of “Investor Relations in Turnaround situations”. The topic was discussed
and explored by three personalities who have lived such situations from different sides namely, from a member
of management called in to rescue a company, from the liquidator and from the financial journalist tasked with
following and reporting on the stages of a company in crisis.
Introducing the discussion, Werner Enz, editor for the Neue Zurcher Zeitung exposed his experience when reporting
on the Swissair scenario. He highlighted how in crisis situations, it was of high importance for him to have
access to the top management who were to keep a clear head and ensure speaking to members of the financial community.
In continuing the discussion, Karl Würthrich, Liquidator of Swissair, commented that in times of crisis,
communications were to be the priority of the top management who were to decide on the content and strategy
of communicating with their investors and opinion makers in the financial community, aided by experienced advisors.
In doing this however, a fine balance is to be kept between being too optimistic and being too pessimistic and
thus worsening the course of events.
Anton Affentrager, co CEO a.i. of Mikron, once the darling of the machinery sector on the SWX and currently
undergoing a turnaround situation after a crisis, gave his views in light of his recent experience, giving four
essential steps, which, in his view, constitute the basis for turning a company around. He listed these in order
as first, securing the necessary financing, second, changing the management, third, fixing the operating business
and finally agreeing on a new strategy. In deciding on the best communications strategy, he advised management
to monitor levels of liquidity on an ongoing basis and thus be led by that.
Transparency, was agreed by all, is a constant to be observed by managers aiming to turn their business around.
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