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Turnaround Management Association, Southern Africa Chapter
TMA
• Origin
• Mission
• Board & Executive
• Certified Turnaround Professional
• Membership
• Status
2
©2004 Deloitte & Touche
ORIGIN
TMA is an outcome of the Task Group for
Organising the Turnaround and Business Rescue
Industries
Work Group of the Industry Task Group
(Supported by 80 Advisory Group members):
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).
Grass-roots involvement from 100 participants
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from all constituencies in the turnaround
and
Absent: Paul Winer (Werksmans), Michael Vacey-Lyle (FNB).
©2004 Deloitte & Touche
business rescue industries in South Africa
ORIGIN
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
Management-led Informal creditor
correction
workout
Emerging problems
Acute and worsening
problems
Insolvency Processes
Business rescue
Liquidation
Insolvency but
possible viability
Insolvency and
unlikely viability
Realisation of the
distressed company's
assets and the
distribution of
proceeds to its
creditors
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
Creditors
Future: new business
rescue legislation
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
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©2004 Deloitte & Touche
ORIGIN
The Task Group defined specific roles for
ABASA and TMA
The timeline of financial distress:
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©2004 Deloitte & Touche
TMA
• Origin
• Mission
• Board & Executive
• Certified Turnaround Professional
• Membership
• Status
6
©2004 Deloitte & Touche
MISSION
The TMA is a voluntarily trade association for
service and capital providers to the turnaround
industry
Mission - 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
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
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©2004 Deloitte & Touche
MISSION
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:
Membership growth:
– Working within proven and welldefined structures
– Sharing in the knowledge and
experience of the international
turnaround fraternity
• 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.
TMA, SA Chapter is a SA initiative with full independence
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©2004 Deloitte & Touche
TMA
• Origin
• Mission
• Board & Executive
• Certified Turnaround Professional
• Membership
• Status
9
©2004 Deloitte & Touche
BOARD AND EXECUTIVE
The initial Board and Executive was elected
on 29th April 2005
TMA initial Board and Executive
Robin Taggart
(Non-Executive Chairman)
Jan van der Walt
(CEO)
Milton Kahari
Colin Batchelor
(Director: Programs)(Director: Membership)
Frans Maritz
Ken Chitando
(Treasurer)
Patrick von Spreckelsen
(Secretary)
Vincent Marino
David Gewer
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©2004 Deloitte & Touche
BOARD AND EXECUTIVE
The 2005/06 Board and Executive will be
elected on 23rd June 2005
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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
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©2004 Deloitte & Touche
TMA
• Origin
• Mission
• Board & Executive
• Certified Turnaround Professional
• Membership
• Status
12
©2004 Deloitte & Touche
CERTIFIED TURNAROUND PROFESSIONAL
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 threepronged, 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.
TMA, SA Chapter will implement a customised SA certification programme
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©2004
Deloitte
& Touche
under the auspices of the ACTP
TMA
• Origin
• Mission
• Board & Executive
• Certified Turnaround Professional
• Membership
• Status
14
©2004 Deloitte & Touche
MEMBERSHIP
We aim to reflect the international membership
profile in Southern Africa
International TMA membership profile
Capital providers
Investors (10%)
Turnaround
practitioners and
consultants
(34%)
Lenders (12%)
Credit (5%)
Academic/student
government/judicial (5%)
Insolvency practitioners
(6%)
Accountants (8%)
Lawyers (10%)
Service providers: 72% Capital providers: 22%
Financial
advisors (13%)
Academic/Government: 5%
The TMA is certainly not an organisation for turnaround practitioners only
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©2004 Deloitte & Touche
MEMBERSHIP
Membership is open to all interested in
corporate renewal and turnaround
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*)
Regular members
Government:
Academic:
Students:
*):
$275/annum
$115/annum
$115/annum
$ 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
TMA members regard the biggest benefit of membership to be that of
networking opportunities, followed by advancement of professional
knowledge
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©2004 Deloitte & Touche
TMA
• Origin
• Mission
• Board & Executive
• Certified Turnaround Professional
• Membership
• Status
17
©2004 Deloitte & Touche
STATUS
TMA, SA Chapter is in the process of
achieving Provisional Chapter Status
Status:
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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:
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Establishing the Certified Turnaround Professional programme
Support for new business rescue legislation
Conferences
Breakfast seminars
Pro bono activities
Golf days
Web site and newsletter
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©2004 Deloitte & Touche
Questions?
Jan van der Walt
Colin Batchelor
CEO: TMA, SA Chapter
Director: Membership
Cell: 082 853 1414
Cell: 084 642 1880
Landline: 011 477 4414
Landline: 011 615 1067
Email: [email protected]
Email: [email protected]
For more information on TMA, SA Chapter: www.turnaround-sa.com
For more information on TMA International: www.turnaround.org
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©2004 Deloitte & Touche