NPL Sales & Analysis

Acting as an advisor, PwC helped arrange Taiwan's first non-performing loan (NPL) auctions in 2002. Since then, we have continued to advise banks and other financial institutions on NPL disposals or purchases, and we remain the undisputed leader in the NPL auction market. We are able to provide customized advisory services for both NPL sell-side and buy-side.

If this is your situation

• Your bank or financial institution suffers from a high NPL ratio
• Your institution faces a large NPL write-off and lack the resources to manage a recovery
• Seek potential NPL portfolios or evaluating to buy any NPL portfolios

• Sale strategy and preparation:
  Portfolio review, classification and stratification; Pooling and packaging sub-portfolios to maximize their potential value; Advising on appropriate form of investor review files, including file content and information collation/organization; Advising on appropriate marketing and disposal strategies; Preparation of confidential information memoranda; Coordinating and managing of third party service providers such as lawyers and asset appraisers.
• Vendor's due diligence:
  Performing detailed due diligence on loan portfolio information including borrower, loan, real estate, chattel and legal issues.
• Valuation advice:
  Providing reasonable and logical valuation on the portfolio for seller to determine a reserve price.
• Investor sourcing:
  Identifying potential investors for bilateral deals or public tenders; Targeting specialist investors for specific sub-portfolios/tranches.
• Execution/completion of sale:
  Management of the entire portfolio sales process; transaction structuring; designing appropriate bidding/sales procedures; overseeing investor contact, including investor invitation and investor qualification; negotiate detailed terms; assisting in signing contract and deal closing.

• Due Diligence and negotiation support: portfolio review and valuation;
• Advising on appropriate deal structures for proposed negotiated transactions;
• Advising on accounting/tax implications of proposed structures;
• Advising on the nuances of the Government approval process (if applicable);
• Assisting in the deal completion process, including assistance in securing requisite government approvals;
• Identifying potential portfolio investment opportunities;