Restructuring and distress services

For investors and lenders in distressed businesses valuation will continue to be at the heart of decisions on whether to support a restructuring, initiate a transaction or liquidate the business. Restructuring in the UK is moving closer to a Chapter 11 model where Courts make judgments about value based on expert testimony presented by the different stakeholders. In this context rigorous, robust valuations are key to preserving value. Our experts have a wealth of experience combining valuation specific industry knowledge with experience of presenting expert valuation evidence in Court.

Contact us if

• you want to know where value breaks in a distressed business' capital structure
• you require an expert valuation opinion as part of a Court approved scheme of arrangement
• you want an independent expert view on the fairness of the valuation implied in a pre-pack deal
• you are being offered equity in a debt for equity swap and you want to know what it might be worth
• you need help valuing specialised assets in an insolvency (e.g. intangible assets, property, specialised fixed assets)

How we can support you

Corporate restructuring

Restructuring exercises can be highly contentious when debt and equity holders have differing opinions about where value breaks in a distressed business' capital structure. This often results in a proposed scheme of arrangement having to be sanctioned through a Court process which involves determining an appropriate valuation and basis of valuation. These exercises therefore need to be robust, rigorous and capable of withstanding expert scrutiny.

Insolvency

Insolvency practitioners have an obligation to maximise value for creditors by selling the assets of the business. These assets can be highly specialised and challenging to value, potentially leaving the insolvency practitioner open to accusations of selling at an under-value.

Pre-packed receivership or insolvency

In certain circumstances the best way of preserving value in administration/insolvency involves a quick sale to a known party immediately after a business has entered administration/insolvency. This is typically referred to as a "pre-pack". Pre-packs have attracted some criticism due to a perceived lack of transparency and question marks over whether fair value was obtained for the assets.

PwC's valuation team can support administrators by providing an independent view of value to enable the administrator to make a proper assessment as to whether the proposed pre-pack is fair.