Business recovery and restructuring services

A tough economic climate, rapid market changes, new competitors, disruptive technologies, strategic choices - 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. In many cases, a downward spiral is not inevitable. It can be arrested and reversed. Early detection and swift, decisive action are the keys to restoring performance and value. That's why timely, professional advice is critical.

In this respect the new Belgian Continuity Act of 31 January 2009 offers a more Anglo-Saxon framework to enable firms in difficulty to recover their financial health. The Continuity Act is aimed at sustaining the continuity of businesses as much as economically possible by making judicial composition more accessible to debtors suffering financial difficulties and presenting more options for recovery. The Act also provides for a more favourable tax regime entailing, amongst other things, the exemption of the benefits resulting from the reduction of debts.

If this is your situation

• You are affected by a downturn in the market or shifting consumer preferences.
• You are facing an actual or potential breach of covenant or you are burdened by excessive debt or poor liquidity.
• You are facing a credit rating downgrade and your debt is trading at 'distressed' levels.
• Your corporate structure is no longer aligned with your business objectives.
• You have units or subsidiaries operating inconsistently with group strategy or are looking to divest/sell off some non-core operations.

How PwC can help you:

Strategic and operational restructuring

• Perform a short-term cash-flow review and identify working capital improvement measures.
• Assist with crisis intervention, stabilisation and stakeholder communication.
• Design and implement a value-recovery plan.
• Provide access to interim managers with relevant experience of similar situations.
• Support external stakeholder negotiations.
• Compose a project management office to support the delivery of turnaround plan.
• Assist in judicial reorganization measures under the Continuity Act.

Financial restructuring

• Assist with inter-creditor negotiation.
• Advise banks and other financial institutions on the disposal, restructuring or purchase of non-performing loans.
• Establish cash needs and controls as well as balance-sheet reconstructions.
• Identify surplus entities, release capital, and achieve a leaner corporate structure.
• Contribute to a better understanding of the financial constraints of the busines.
• Assist in judicial reorganization measures under the Continuity Act.

Optimised exit services / distressed M&A

• Optimise value by helping you design and execute a controlled exit plan.
• Maximise value through the sale of shares or business and assets in a tight timeframe.
• Reduce the cost for the business by avoiding delays and obstacles typical of a divestment.
• Release capital to reinvest in the business.
• Enable management to re-deploy resources more productively.
• Maintain brand reputation and avoid adverse publicity.