Holistic approach in the area of reorganization and restructuring
Regardless of the size of the company, industry and ownership structure, we support you, starting from an analysis of the corporate situation to the development of turnaround concepts and restructuring measures to subsequent implementation. We navigate you through all the challenges of a crisis and help you to achieve a sustained enhancement of your operative performance. In the process, we assess your specific situation as a whole, considering the financial situation, key performance indicators as well as operative functions, the business model, the project and the strategy. This holistic approach makes us a competent advisor for your reorganization and restructuring project.
When a company underperforms or is experiencing financial difficulties and has challenges in fulfilling its debt obligations, we can provide customised business reviews on behalf of the company itself, lenders or other interested parties. These independent reviews can make it easier to identify and evaluate alternative solutions, and are used to substantiate decisions for the business’ owners and lenders.
When is there a need for an Independent Business Review?
- As a company’s owner and/or manager, you may need assistance in presenting a restructuring process to financial stakeholders.
- As a financial stakeholder, you may be concerned about the development of a company you have invested in or lent money to, and want to get an independent review to assess the situation.
Typical problems:
- The company is in danger of a breach of its loan covenants
- The debt burden is too high in relation to current and expected cash flows
How can PwC assist you?
- Layout the financial and/or operational situation of the business and present the alternatives in the short term, along with longer-term measures.
- Analyse how the market is expected to evolve in terms of growth, competition, customers and product development.
- Analyse budgets and business plans, including an assessment of the ability to service loans.
How we can help
We focus primarily on the company's short and long-term liquidity and the planned measures in the business plan to determine whether the business has the ability to handle its obligations. This is evaluated with the expected developments in the relevant markets and specific risks associated with the business. On this basis, we conduct sensitivity assessments and preparation of various scenarios. The scope of the project is adapted to the situation at hand, and has a time frame of three to six weeks.
An Independent Business Review differs from due diligence in many ways, including having a greater focus on both short and long-term liquidity, as well as a greater focus on the alternatives and opportunities that exist to drive the company forward.
Financial restructuring
Successful restructuring through transparency
In crisis situations, management and capital providers need reliable information on the financial status of the company
PwC helps companies and investors to gain the required overview and develops solution options for overcoming the crisis in consideration of the interests of all stakeholders. Experience shows that most restructuring situations require more than just one solution. Solutions can range from short-term measures to bridge liquidity shortages to reaching a sustainable agreement, or the generation of additional liquidity to reduce an existing financing gap. Last but not least, we identify options for financial restructuring and work out a viable solution for the parties involved.
PwC advises companies, capital providers and investors throughout the process and, together with you, always develops a coherent financing concept – an important, if not the decisive element of successful restructuring.
Our service at a glance
Your concern
You need an overview of possible financing options in restructuring? You are searching for “emergency funding” to close a liquidity gap? You need an efficient liquidity management? Is the company's operative earnings power no longer sufficient to service the existing capital structure? Your capital providers have signalled that envisaging further involvement is subject to certain conditions? The questions are wide-ranging and so are the possible solutions.
Or, as the financing partner of a company, you need transparency regarding the actual financial situation of the company and possible restructuring options in order to retain your position the best possible way?
Our offer
PwC experts support companies in crisis situations as well as potential capital providers in the conceptualization, communication and negotiation of solutions. PwC advises on debt restructuring measures and provides support when dealing with capital providers and suppliers. Our experts also help to develop and implement measures for the short-term release of liquid funds and for strengthening the company's liquidity.
We deal with the stakeholders involved in the process, already thinking two steps ahead and striving for a solution that is acceptable for all parties. Our experts are familiar with the general tasks and challenges of refinancing in the restructuring environment. They know the complexity of recapitalization concepts and the time pressure, under which they are to be prepared and implemented.
Our promise
We support you throughout the process. Our experts have experience with all parties involved and offer you full-scope professional commercial and tax support in financial restructuring, regardless of whether you act as a company or a capital provider.
