Turnaround Management Association, Southern Africa Chapter.

Turnaround Management Association, Southern Africa Chapter

2©2004 Deloitte & Touche

TMA

• Origin

• Mission

• Board & Executive

• Certified Turnaround Professional

• Membership

• Status


TMA is an outcome of the Task Group for Organising the Turnaround and Business Rescue Industries

Seated: Stephan Claassen (FNB), Lawrence Ngobeni (University of Pretoria - alternate for Professor David Burdette) (Secretary), Themba September (Corporate Renewal Partners) (Chairman), Mervyn King (Brait), Ricardo Graham (Maximus Turnarounds).

Standing: Inus du Preez (FNB), Sarel Lategan (Standard Bank - alternate for Christo Faul), John Evans (Deloitte), Robin Taggart (Nedbank), Patrick Daly (Daly Incorporated), Kevin Cochrane (Nedbank - alternative for Anna Isaac), Krisjan Barnard (Absa - alternative for Trevor Murgatroyd), Jan van der Walt (Corporate Renewal Partners), Les Matusen (Credit Management Solutions - alternate for Rowan Gordon), Jan Bicker-Caarten (RMB), Martin Leigh (RMB), David Gewer (Werksmans).

Absent: Paul Winer (Werksmans), Michael Vacey-Lyle (FNB).

Work Group of the Industry Task Group(Supported by 80 Advisory Group members):

ORIGIN

Grass-roots involvement from 100 participants from all constituencies in the turnaround and

business rescue industries in South Africa


The Task Group assessed organised industry in terms of the model describing the timeline of financial distress

The 4 stages in the timeline of financial distress:

Informal Processes Insolvency Processes

Management-led correction

Informal creditor workout

Business rescue Liquidation

Emerging problems Acute and worsening problems

Insolvency but possible viability

Insolvency and unlikely viability

Turnaround in the absence of creditor and legal issues

Informal agreement between management and creditors (banks) to reduce indebtedness

Present: judicial management and Section 311 Compromise of CreditorsFuture: new business rescue legislation

Realisation of the distressed company's assets and the distribution of proceeds to its creditors

Management retains the initiative and controls the turnaround agenda

• Terms of workout agreement dictates agenda

• Banks hold the power

• Court-driven – inflexible and expensive• Historically a low success rate

But new business rescue legislation should deliver a higher success rate in

stage 3

ORIGIN


The Task Group defined specific roles for ABASA and TMA

ORIGIN

The timeline of financial distress:


TMA

• Origin

• Mission



• Membership

• Status


The TMA is a voluntarily trade association for service and capital providers to the turnaround industryMission - to:• Serve as a forum for convening turnaround professionals from

all disciplines:– to exchange information, ideas and knowledge on the turnaround

business

• Promote high standards of practice and improved methodologies in turnaround management

• Foster professional development opportunities for turnaround professionals

• Serve as a clearinghouse of information and research pertinent to the turnaround business

MISSION

The TMA is a voluntarily association to promote the turnaround industry, and for purposes of information exchange, networking, education and

raising the standards of turnaround in both the informal sector and formal business rescue


The Industry Task Group decided on affiliation to the pre-eminent turnaround organisation – the Turnaround Management Association• Rather than reinvent the wheel,

affiliation allows for:– Working within proven and well-

defined structures– Sharing in the knowledge and

experience of the international turnaround fraternity

MISSION

TMA, SA Chapter is a SA initiative with full independence

• TMA, SA Chapter is a 100% SA initiative:– The local chapter is owned and controlled by SA turnaround

industry participants– It's board of directors and office bearers are totally independent of

the international organisation it is affiliated to– TMA International is directive only with regard to:

• Good governance principles• Ensuring that chapters do embark on programs (of the chapter's own

choice) that are beneficial to the turnaround industries in local jurisdictions.

Membership growth:


TMA

• Origin

• Mission



• Membership

• Status


Jan van der Walt(CEO)

The initial Board and Executive was elected on 29th April 2005

TMA initial Board and Executive

Milton Kahari(Director: Programs)

Ken Chitando(Treasurer)

Colin Batchelor(Director: Membership)

Frans Maritz Vincent Marino

BOARD AND EXECUTIVE

Patrick von Spreckelsen(Secretary)

Robin Taggart(Non-Executive Chairman)

David Gewer


The 2005/06 Board and Executive will be elected on 23rd June 2005

• Non-executive Chairman• CEO• Deputy-CEO• Treasurer• Secretary• Director: Membership• Director: Programs• Director: Public Relations• Director: Sponsorship• Director: ACTP Relations & Education• Director: Pro Bono Activities• Director: Newsletter• Director: Web site• 2x Non-executive Directors

BOARD AND EXECUTIVE


TMA

• Origin

• Mission



• Membership

• Status


The Association of Certified Turnaround Professionals is sponsored by the TMA

• The ACTP offers the sole international programme of certification for professionals engaged in the turnaround, crisis management, restructuring and renewal of troubled businesses

• To become a Certified Turnaround Professional (CTP), practitioners must meet stringent standards of education, experience and professional conduct:– Completing at least five years in consulting with a minimum of

three years focused on corporate renewal – Providing three client case studies and names of individuals who

can verify authenticity – Submitting to a careful background check conducted by the ACTP

Standards Committee – Passing a challenging examination which covers ACTP´s three-

pronged, comprehensive Body of Knowledge: relevant theory and practice regarding financial and managerial accounting and tax, turnaround and crisis management, and insolvency law.

– Posting names of applicants for 60 days in order to solicit any objections.

CERTIFIED TURNAROUND PROFESSIONAL

TMA, SA Chapter will implement a customised SA certification programme under the auspices of the ACTP


TMA

• Origin

• Mission



• Membership

• Status


We aim to reflect the international membership profile in Southern Africa

MEMBERSHIP

Turnaround practitioners and consultants (34%)

Lawyers (10%)Accountants (8%)

Insolvency practitioners (6%)

Financial advisors (13%)

Academic/student government/judicial (5%)

Credit (5%)

Lenders (12%)

Investors (10%)

International TMA membership profile

Service providers: 72% Capital providers: 22%

The TMA is certainly not an organisation for turnaround practitioners only

Capital providers

Academic/Government: 5%


Membership is open to all interested in corporate renewal and turnaround

• Regular members *): $275/annum• Government: $115/annum• Academic: $115/annum• Students: $ 65/annum

*) Regular members are turnaround professionals from all disciplines except for government, academic and students

• Members receive:– Monthly copies of the Journal of Corporate Renewal– Discounts on local and international events

MEMBERSHIP

TMA members regard the biggest benefit of membership to be that of networking opportunities, followed by advancement of professional

knowledge


TMA

• Origin

• Mission



• Membership

• Status


TMA, SA Chapter is in the process of achieving Provisional Chapter Status

Status:• Current status: Chapter-in-formation• 2005/06 Board and Executive election: 23 June 2005• Aiming for Provisional Chapter status by July 2005• Aiming for full chapter status: July 2006

Programs planned post July 2005:• Establishing the Certified Turnaround Professional programme• Support for new business rescue legislation• Conferences• Breakfast seminars• Pro bono activities• Golf days• Web site and newsletter

STATUS


For more information on TMA, SA Chapter: www.turnaround-sa.com

For more information on TMA International: www.turnaround.org

Questions?

Jan van der WaltCEO: TMA, SA Chapter

Cell: 082 853 1414

Landline: 011 477 4414

Email: [email protected]

Colin BatchelorDirector: Membership

Cell: 084 642 1880

Landline: 011 615 1067

Email: [email protected]

Turnaround Management Association, Southern Africa Chapter.

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Transcript of Turnaround Management Association, Southern Africa Chapter.