Corporate Advisory & Restructuring
What's happening?
The current challenging economic climate, rapid market changes, new competitors, disruptive technologies, strategic errors - any or all of these can plunge a company into serious financial distress. Left unaddressed, they may threaten corporate survival. Whether these factors occur in isolation or converge, they typically trigger a host of problems, including underperformance, declining earnings, and liquidity and cash-flow blockages.
Companies often exhibit symptoms of distress well before a crisis erupts. Early detection and swift, decisive action are the keys to restoring performance and value.
How PwC can help you
PwC's Corporate Advisory & Restructuring division is a dedicated team of specialists with extensive skills in diagnosing, advising on and deploying commercial solutions for underperforming, inefficient or distressed organisations and those confronted with unexpected events. We can help you quickly identify problems, gain cooperation, develop viable solutions, and implement them with sensitivity and precision.
As an insurance industry leader, PwC offers clients, insurers and policyholders strategic and technical advice on insurable risk coverage and exposures, radical claims transformation, leakage reviews and cost reduction measures. We assist clients to manage the presentation, research, analyses and settlement of insurance claims and economic losses relating to business interruption, property damage, product recall, professional indemnity and Directors and Officers claims
Questions to consider
- Is your debt trading at "distressed" levels?
- Are you burdened by excessive debt or poor liquidity?
- Are you facing an actual or potential breach of covenant?
- Is your corporate structure no longer aligned with your business objectives?
- Are you affected by unforeseen changes in the market or shifting consumer preferences?
- Are you facing a credit rating downgrade?
- Are your units or subsidiaries operating inconsistently with group strategy or are looking to divest/sell-off some non-core operations?
- As a business or financial stakeholder, do you have concerns about the business and wish to appoint independent reporting accountants to review the situation and provide available options?
- Are you a stakeholder in a distressed business? Then you need to manage your exposure, both legal and financial.
- Do you need to avoid, mitigate or minimize losses by planning and ensuring against unexpected events?
- Have you experienced an insured event that has resulted in a claim being made against you or your insurer?
- Are you concerned with the adequacy and appropriateness of your insurance coverage ?
Services we provide
Restructuring / Turnaround
- Support for underperforming businesses - Our experienced team help underperforming businesses plan and implement recovery strategies quickly and efficiently. This may involve moving forward on several fronts - crisis intervention, stabilisation and stakeholder communication; generating quick wins and reducing working capital; designing and implementing a value-recovery plan.
- Restructuring - For underperforming companies, we deliver restructuring solutions designed to build a platform for swift recovery and sustained future success. We thoroughly assess all revitalisation options; develop a plan of action in partnership with management, creditors and other stakeholders; and mobilise the resources required for effective implementation. Our professionals utilise PwC’s unrivalled industry expertise and local knowledge in planning complex, cross-border restructurings.
- Optimised exit services - When external and/or internal pressures dictate withdrawal from a country, industry, company, market or brand, PwC can assist in optimising value by helping you design and execute a controlled exit plan - sell, fix and sell, wind-down. Our proven methodology optimises shareholder returns, mitigates delays and obstacles, and minimises disposal/divestment costs.
Financial Analysis
- Independent business reviews - When a company is underperforming, is in distress, or is in crisis, our first step is to undertake a tailored, objective assessment of the situation and resources. Our rapid and rigorous review process scrutinises financial performance, operating dynamics, asset deployment, and management issues - and then identifies a range of options.
- Distressed Debt Services - We advise banks and other financial institutions on the disposal or purchase of non-performing loans. Our services include conducting financial due diligence and portfolio reviews, preparing information memoranda on asset valuations and disposal options, identifying potential investors, and facilitating sale negotiations and deal completion.
- Corporate Simplification - When an existing corporate structure no longer meets a business’ objectives, we will work with you to identify surplus entities, release capital, reduce operating costs, and achieve a leaner, more transparent corporate structure. Our tailored approach addresses critical issues, minimises risk, and helps ensure a smooth transition to a streamlined operating model.
Insolvency
- Executory/corporate insolvency - Subject to local legislation, we may assume the role of Receiver, Administrator or Liquidator, or we may act as advisor to parties involved in voluntary arrangements, administrations, receiverships, and compulsory or voluntary liquidations.
Insurance Claims and Advisory
- Insurance claims preparation - Major incidents or other unexpected interruption, threaten not only short term profitability, but potentially the survival of the business itself. Prompt and fair resolution of the resulting insurance claim is an important part of the business recovery. Our experienced insurance team engages in proactive management of the claim process from assessment of the loss to negotiation of the settlement. This results in enhanced financial outcomes from reduced settlement delays and avoids prolonged disputes.
- Insurable risk / business interruption reviews - Insufficient levels and scope of insurance coverage may result in reduced or no indemnity from insurers in the event of an unexpected loss. We undertake comprehensive and / or specific reviews across all major classes of insurable risk in order to assess the adequacy and appropriateness of policy cover and declared values. Our proven methodology's provide policyholders with comfort that its insurance policy will respond adequately to various loss scenarios as well as optimising premium efficiency and reducing the likelihood of a dispute with insurers in the event of a claim.
- Insurance Consulting - Our experts provide a range of consulting services to both insurers and policyholders. For insurers this includes; leakage review of claim portfolios, claim process improvement, functional and other cultural change initiatives. For policyholders the group provides a wide range of advice including reviewing program adequacy, insurance due diligence, maximising insurance function effectiveness and the management of tenders for insurance broking services.
