Glossary · Reading the business
Turnaround Plan
In short
This is a strategic plan to revive a struggling business by identifying problems, implementing solutions, and restoring profitability. It outlines specific actions and timelines.
What it means in a deal
If you're acquiring a business that needs significant operational improvement, your lender will want to see a credible turnaround plan as part of your business plan. It demonstrates your understanding of the challenges and how you'll achieve the cash flow needed for debt service.
Related terms
Common questions about Turnaround Plan
- What if the acquired business has a history of declining revenue, but the buyer has a strong turnaround plan?
- Is a comprehensive business plan mandatory for an SBA 7(a) loan?
- Is a detailed business plan necessary for an SBA 7(a) loan application?
- How important is a business plan for an SBA 7(a) loan application?
- Does the SBA require me to create a formal business plan to apply?
- What is the required timeframe for a lender to submit a liquidation plan?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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