When continued funding no longer serves an underperforming unit
Not every struggling unit should be rescued. Clear exit criteria protect the wider group from endless subsidy.
Turnaround planning assumes a viable core. If the unit’s customers have left for structural reasons—obsolete product, lost licence, collapsed local demand—more advisory work will not restore value.
Sponsors need exit criteria written before the engagement begins: minimum contribution margin after ninety days, maximum additional capital, and a date when the board will decide to continue, sell, or close.
Documenting those thresholds removes surprise later. Teams still work hard; the difference is that capital is not open-ended.
In group structures common across Thai family businesses, emotion can keep a legacy unit alive long after economics argue otherwise. An independent briefing session can separate heritage from cash reality without public blame.
Stopping funding is not failure when it protects healthier units and frees leadership attention. It is a governed decision, and it belongs in the same conversation as recovery planning.