Effectively assessing business viability
Forming a clear view on a business at the centre of the situation is the first critical step in the turnaround process.
All stakeholders need a ‘single version of the truth’ as the foundation for their thinking around the solution. To achieve this, a review of the business’ recent performance, liquidity position, its business plan, funding structure and current and future potential value is required.
Our review gives all stakeholders the ability to assess immediate and long-term prospects, consider the appropriate funding structure and start working through their individual options. If required, our team has the skills and experience to advise on or create a business plan.
We focus on the key commercial and financial issues to answer the big questions, quickly, including:
What are the reasons for underperformance?
How severe is the liquidity situation, do we need an urgent or interim solution?
What are the longer-term prospects?
What is required to support a turnaround?
What is at stake, who are the key stakeholders and what are their objectives?
Identifying the strategic options
We help businesses work through and prioritise options, whether it’s refinancing debt, an innovative financial restructuring, securing an exit or introducing new money to the business.
We define a range of possible solutions and outcomes for stakeholders, demonstrating how each option could be implemented, over what timeline and the potential risks involved.
In many cases, more than one solution may be required. This may be an interim measure to support liquidity until the longer-term outcome can be agreed, or to generate cash from alternative sources to reduce the overall funding requirement. For example disposals and raising new money.
While pursuing the preferred solution, it’s also important to understand and plan for alternative outcomes.
Not only can this provide leverage in negotiations, it keeps businesses on the front foot if they need to take alternative action.
Financial restructuring advisory
We support businesses of all sizes when they negotiate and implement financial restructuring solutions. We help to deliver the optimal outcome, often in complex, international and multi-lender situations.
We provide leadership throughout the restructuring process, which can often be a highly pressured and sometimes unfamiliar environment.
A consensual solution will usually provide the best outcome for all stakeholders. Our team has extensive experience with all parties around the table. For example shareholders, banks, funds, governments, regulators and pension scheme trustees. This means that we can effectively navigate the difference in approaches and objectives, to achieve this goal.
We advise on, or lead negotiations on behalf of our clients. We engage and manage stakeholders and preempt issues before they arise, to smooth and guide the way through the process.
Whatever the solution that businesses require, we work with them to effectively implement the restructuring and deliver the optimal financial situation for that business to operate in.