Finance and funding
The right finance at the right time
When times are hard, cash is king and managing the cost base essential. The companies that emerged from the last recession as sector leaders typically held more cash on their balance sheet than their less fortunate competitors.
To survive, businesses also need to consider reducing their cost base sustainably, while maximising profitability. For some, fundamental change to their business model will be required.
Many companies will be concerned about their chances of refinancing, but debt funding is still available to businesses with a well thought out plan and a robust cash position.
- Click here to find out how to drive cash optimisation on a sustainable basis
- Click here to find out how to refinance in a credit crunch
- Click here to find out how to keep control of your cash
- Click here to find out how to continue to fund your change programme
What questions should I ask myself?
- What is the business' current headroom and what headroom remains once I run my most likely scenarios? Are there any liquidity/covenant issues arising?
- What steps could I take to create more headroom? (For example, proactive working capital management, rapid cost reduction, access to all facilities, disposal of surplus assets).
- What opportunities are there to renegotiate existing financing arrangements as business model and circumstances evolve?
- Am I familiar with my obligations under financing facilities?
- Have I reviewed my internal reporting systems to focus on key performance indicators which are more adapted to the current environment?
- What impact has the market volatility had on my pension scheme? Have I reviewed my cash commitments and identified alternative ways to secure the pension?
How can we help?
- Business valuation
- Independent business reviews
- Debt advisory
- Corporate restructuring and refinancing
- Tax efficiencies
- Working capital management
- Pension advisory
- Corporate liability management
- Finance & Treasury
- Strategic review and sale of non-core assets, divisions or subsidiaries
- Optimised exit services
Case Study
UK food producer
After suffering a 40% decline in sales and with temporary finance arrangements frozen at £25m, PwC was appointed to advise on a financial and operational restructuring this UK food producer.
The role initially entailed establishing a stable financial platform by leading a £55m debt re-financing, which doubled debt facilities and significantly reduced interest costs. Subsequent phases have involved helping the company to identify potential cost cutting and revenue enhancement opportunities, introducing a Chief Restructuring Officer and assisting him in the implementation of an operational restructuring.
