Steps Ahead... Restructuring Services
We offer the following Restructuring Services:
A. Independent Business Review (IBR)
We provide an objective and independent analysis of the business, aimed at revealing the true reasons for financial distress and finding robust methods to improve the situation, taking into consideration the positions of all interested parties. Our IBR work normally includes:
- providing an overview of the company's major activities (markets, products, facilities, management, etc).
- analysing and explaining the key reasons for recent financial underperformance.
- assessing the current financial strength of the business and its future financial prospects.
- reviewing the short- and long-term cash flow forecasts and providing our clear views on the relevant sensitivities.
- security review and fall-back planning (an option for lenders).
Following this, we can develop strategic options and recommendations for going forward and continue working alongside lenders, stakeholders and all levels of management to implement specific measures for getting the business back on track. Rescuing a troubled company is quite different from dealing with a healthy business and requires specialised knowledge. We have this knowledge, as we constantly work with financial distress situations. We can share our experience with you and pool resources to cope with the crisis.
B. Cash and working capital management
Cash generation is the key task for any company in both good times and bad times, but when in financial distress the importance of positive cash flows becomes a matter of business survival.
If you are facing any kind of cashflow issues, we can help to increase the efficiency of your cash and working capital management by:
- improving the visibility and controls of cash flows: this involves introducing robust cash flow forecasting, improving cash reporting, including KPIs and changing policies and incentivisation, bringing cash to the heart of decision making across your business.
- identifying and delivering sustainable cash flow improvements from working capital and other areas of the business including treasury, tax, property, and other assets.
We tailor our approach to address your specific needs depending on the specific circumstances of your company.
C. Operational restructuring
Operational restructuring aimed at improving the cash flows of a distressed company is a natural thing to look at after initial stabilisation has been achieved and there are no pressing liquidity issues.
However it is often the case that operational restructuring programs triggered by financial distress are not planned thoroughly enough or properly implemented, and as a result do not achieve the desired results.
We support operational restructuring activities as part of your team and help you to:
- find more opportunities for cash flow improvement
- convert a greater proportion of opportunities into real savings
- make it all happen more quickly
- avoid the mistakes we have seen made elsewhere.
Restructuring has a clear focus in our business activities, so we bring experience, share best practices from other companies, and provide a proven methodology that can be quickly tailored to match your situation.
D. CRO services
We can support or take on the role of Chief Restructuring Officer (CRO), becoming part of the team to plan and execute the restructuring process. This gives you additional resources and eases the burden on management, leaving them time to concentrate on running the business.
Our exact CRO role will be determined in response to the needs of the particular project. Generally, however, we:
- work closely with the CEO, CFO and other top managers
- initiate, coordinate and implement restructuring actions (normally through a specially established Restructuring Committee involving key management)
- take responsibility for developing the restructuring plan and negotiating it with lenders and other stakeholders
- coordinate legal and other advisers involved in the restructuring process
Rescuing a troubled company is quite different from dealing with a healthy business and requires specialized knowledge.
E. Reviewing cash flow forecasts of a distressed business
If you are thinking about restructuring your debt you may have already realised that successful achieving this goal is only possible after a difficult negotiation process, specifically complicated in situations where there are multiple creditors with diverse contractual rights, interests and workout strategies.
Relying on our extensive business forecasting and modelling experience and using taylormade financials models, we review the overall logic and integrity of cash flow projections and check whether they are logically constructed and internally consistent. If you need our opinion on the quality of cash flow projections or are looking for suggestions on improving the forecasting process, please do get in contact.
F. Exit planning and implementation
Dynamic changes in the market and competitive conditions bring high pressure on companies striving for high profitability of their business, and require them to reconsider their strategy and stop non-core, unprofitable, disruptive or duplicated activities.
We know how to exit such activities, balancing the relative merits of speed, cost and risk. Combining our past experiences with tried and tested methodologies we are able to offer a tailor-made, pragmatic approach to exiting a business that has become a brake on your strategy. In addition, our presence can reduce competitive business pressure on management and provide objectivity in often emotional situations.
If you are going to close down non-core, loss-making, excessive or redundant operations, we will support you to do this at minimum risk and cost to the rest of your business.
G. Lender advisory & Support in negotiating debt restructuring terms
There are a lot of strategies for working out a distressed debt and they all should be considred by the lenders. If the debtor cooperates and his business is viable, financial restructuring (restructuring of debt) is often a preferable option.
Experienced bankers know that successful debt restructuring is only possible after a difficult negotiation process, specifically complicated in situations where there are multiple creditors with diverse contractual rights, interests and workout strategies.
Acting as a financial advisor to the lender(s) or coordinating committee of lenders, we facilitate negotiations between various stakeholders in the restructuring process, analyse information provided by the debtor and ensure it is accurate and reliable, assist in contingency planning (e.g. conducting a break-up analysis) and perform other tasks to help to achieve the solution most favourable to our client and acceptable for the other parties.
Financial restructuring (restructuring of debt) is often vitally important for survival of a distressed business.
If you are thinking about restructuring your debt you may have already realised that successful achieving this goal is only possible after a difficult negotiation process, specifically complicated in situations where there are multiple creditors with diverse contractual rights, interests and workout strategies.