When an organisation becomes aware that a subsidiary business, a division factory, a branch or a brand is under-performing, PwC assists in achieving an optimal recovery of value.
We help to identify the issues and evaluate the options available and agree and assist in implementing the chosen approach (eg sell, fix and sell, or wind-down). We also identify and help manage the risks inherent in the process.
The planned outcome will be an increase in shareholder value by selling, restructuring, closing or winding down the under-performing business or subsidiary. Our global capabilities, extensive experience, proven methodology and swift service working under pressure of time are our key differentiators.
We aim to avoid the 'fire-sale' scenario. 'Fix and sell' is a preferred exit route where we combine our turnaround and disposal expertise to increase the value of realisation. We may even consider expanding the business by merger or acquisition if this can add to the eventual resale value. However, if the optimal solution is a vendor-financed sale then it is best to identify this option early.
Over a planned period, we would gradually run-down the business, completing existing orders, realising assets and maximising receivables.
In some cases, though painful, the optimal solution might be to close the business immediately.