The rapidly changing industrial environment, the rampant development of technology and changes in consumer habits can all result in a successful company having to re-think its current strategy and operations. They key to long-term market success is for companies to re-define their structure and operation from time to time, either partly or across the board. This normally happens if one of the indicators measuring profitability ends up below what was previously customary, or falls significantly short of expectations. If a company has an appropriate monitoring system, then it can predict difficulties in advance from the trends, and has time to prepare for eliminating them or to adjust to the changed circumstances.
By restructuring we chiefly mean reorganising a company’s ownership structure, operating activity or financing; this is aimed at adapting to the changed market environment, and restoring or increasing previous profit levels.
As part of our restructuring management service we help our clients stabilise their profitability and liquidity positions in the short term and make them sustainable in the long run.
Restructuring consulting
Once the reasons for the decline have been identified there are various options available for getting the business back on track. We help our clients in selecting the approach that gives them the solution they need, as well as in preparing the chosen solution and executing it. Possible solutions during restructuring can include reorganising activities that are not functioning properly, exploiting group synergies, and involving new (professional or financial) investors.
Other solutions can involve buying up certain businesses or merging with them. In cases like these, it is worthwhile focusing on businesses that have special know-how, which can actively contribute to the company’s success, or on businesses of a certain size with which the company’s profitability can be raised substantially by means of a larger plant size, market share acquisition or even a reduction in the number of competitors.
Our consulting in restructuring management includes, but is not limited to, the support and implementation of the following activities:
- intercompany restructurings
- spin-off and sale of loss-making divisions
- involvement of new investors
- acquisitions
Refinancing consulting as part of restructuring management service
The majority of companies choose an inappropriate mix of funding to attain their objectives, or finance their activities using the wrong resources. In many cases this generates additional cost for no reason, which can hinder further growth.
We offer our clients refinancing consulting, which includes the following:
- assessment of current financial situation
- mapping of optimal financing structure
- preparation of business plan
- identification of potential financiers, collection of offers
- mapping of relevant funding, preparation of applications
- evaluation and ranking of financing offers
- supporting negotiations with chosen financier
