Turnaround Readiness Diagnostic

Is the business experiencing negative operating cash flow or relying on overdraft facilities to meet monthly obligations?

This includes delayed supplier payments, stretched creditor days, or drawing on revolving credit for operational costs.

Has gross profit margin declined by more than 2 percentage points in the last 12 months?

Consider both new vehicle and aftersales margins combined.

Is the group carrying debt (floorplan, term loans, or shareholder loans) at a level that constrains strategic investment?

Has the group received formal warnings, action plans, or below-threshold scores from any OEM in the past 18 months?

Is the group experiencing reduced vehicle allocation, delayed model introductions, or franchise review risk?

Has the business lost more than two senior leaders (GM, Aftersales Director, Sales Director) in the past 12 months?

Is the business overly dependent on one or two key individuals, with no clear succession plan in place?

Has the group lost measurable market share in its primary brand or territory in the past 12 months?

Has a new competitor entered the group's primary market, or has an existing competitor significantly expanded capacity?

Is the group's service absorption rate below 50%? (Aftersales GP as a % of total fixed overheads)

Are there known operational inefficiencies (high technician idle time, poor parts availability, low CSI scores) that have not been addressed?

Does the leadership team lack a clear, agreed 3-year strategic plan with defined priorities and accountability?