Business Restructuring Services

Working together to emerge stronger in a crisis

With a commitment to achieving the best possible outcomes, we help clients navigate critical and complex issues, improve performance and realise strategic goals.

A crisis situation can disrupt operations, damage reputation, destroy shareholder value, and trigger other threats. There are many reasons why a business may find itself facing challenges. Some of the triggers are:

  • Decline in earnings
  • Cash and liquidity pressure, financial covenant pressure
  • Inability to refinance and find the best source of capital
  • Change in business model or a significant event
  • Boardroom tussle or shareholder dispute

Whatever the issue, we can help you make informed decisions to navigate through the crisis. The more prepared you are to manage shocks, the less likely you will fall victim to the serious harm caused by a crisis.

We provide support to all stakeholders; whether you are part of management, lenders, creditors or shareholders to help you find sustainable solutions that deliver value. 

We leverage on our PwC network to bring industry expertise, data-led insights and bespoke solutions to help you make the right decisions.

Free up cash and improve liquidity

Current uncertainties in the global economy is putting unprecedented pressures on companies and their supply chains. Companies are wrestling to balance revenue growth and earnings while shoring up required cash flow for unhindered business operations and to prevent breach of financial covenants. Companies who excel in managing their working capital will have a real competitive advantage.

Some questions you may have are: 

  • Do you know where cash is tied up in your organisation? 

  • Do you have a complete and accurate view of short term cash-flow across the entire business? 

  • Have you considered how the current operations of the firm affects the cash flow and what can be done to balance cash, cost and service? 

  • Are you leveraging on digital solutions to monitor your cash flow in real time? 

We support you in creating a tangible competitive advantage for your company through optimised working capital management – even in uncertain times. From identifying potential opportunities and defining goals to implementation, we work with you to increase your company’s value – over the long term and in a way that drives growth.

How we can help you:

  • Optimise operational processes that underpin the working capital cycle

  • Help implement supply chain finance programmes to support supply chain partners

  • Implement digital tools and data analytics to enhance visibility and data-driven decision making

  • Achieve rapid cash conservation in a crisis situation

  • Create a 'cash-culture' and upskill the organisation

Based on our experience of working with clients to improve their cash flows and working capital, CEOs, CFOs, Group Finance Directors and Group Treasurers are currently likely to face the following issues:

working capital potential challenges

In the face of rapidly changing business models and disruption, cash and working capital are fundamentals that businesses can easily lose sight of. Harnessing the power of digital presents a unique opportunity to retain control and address the challenges presented by organisational silos, complex systems and conflicting targets. Companies that are able to exploit the benefits of digital will lead the way in unlocking cash and creating more value. 

 

Process Mining

Improve working capital management by visualising and rectifying process gaps

 

Respond to disruptions and distress

Any business disruption will likely have financial implications. This can quickly lead to pressure on cash, compliance with financial covenants and availability of funding facilities, all of which could undermine the viability of a business.

Some questions you may have are: 

  • Is it possible to turnaround a business experiencing financial difficulties? 

  • What options are available to restructure debt and right-size a company's balance sheet? 

  • How can a company best navigate the situation of distress?

Management and stakeholders such as banks and investors need reliable information on the strategic, operational and financial condition of businesses when responding to a crisis. 

All possible restructuring concepts as well as their limits and remedial actions must be analysed to help management make informed decisions for a strong recovery. 

We are able to work with you to develop robust concepts and solutions-oriented actions to restructure a business. We will manage the various stakeholders (such as vendors, financial lenders and shareholders) involved in a restructuring exercise to ensure that management stays focused on the business while we guide you through the restructuring process until its completion. 

How we can help you:

  • Perform an independent business review to provide an impartial view of the current financial position and pressure points for a recovery 

  • Develop restructuring or turnaround plans to address the root causes of distress 

  • Provide assessment of the funding gap and strategies to address this gap

  • Implementation assistance around the restructuring plan - including managing stakeholders

  • Monitoring the financial performance of a company for stakeholders’ benefit. We are able to do this as a post restructuring event or even in cases where no restructuring has occurred and stakeholders simply require an independent monitoring of financial performance and/or compliance with covenants

Maintaining control and maximising recovery

As the stakeholder landscape evolves in a crisis, the key is for management to build trust and confidence with its relevant stakeholders by ensuring that their interests are managed appropriately. It is also imperative for the affairs of the business to be stabilised before a strategy can be implemented to maximise recovery. 

If parts of the business are approaching a crisis, you need to ask how you are managing the situation to stay in control. What will happen with the business or subsidiaries in question - should they be sold, closed, restructured or be part of an insolvency proceeding? 

There are various options available to management to carve out ailing parts of the business. The costs and risks of all options should be considered carefully before making an informed decision on the best solution and ensuring that it is implemented properly. 

How we can help you:  

  • Stabilisation stewardship to preserve value - Take control, regularise the affairs of the company and ensure continuous engagement with relevant stakeholders 

  • Maximise recovery options - Develop strategies/ options available to maintain business continuity based on the tools available under the Companies Act 2016 (i.e. Corporate Rescue Mechanisms, Receiverships and Liquidations)

  • Execute recovery - Execute your recovery strategy, including formulating and implementing an asset recovery strategy to trace and recover assets that could have been subject to misappropriation

Insights and publications


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Our other services in Deals

Mergers & Acquisitions

Value Creation

Economics, Policy and Infrastructure Capital

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Contact us

Victor Saw

Victor Saw

Deals Leader, PwC Malaysia

Tel: +60 (3) 2173 1677

Roger Yeoh

Roger Yeoh

Deals Partner, Business Restructuring Services, PwC Malaysia

Tel: +60 (4) 238 9272

Ganesh Gunaratnam

Ganesh Gunaratnam

Deals Director, Business Restructuring Services, PwC Malaysia

Tel: +60 (3) 2173 0888

Dennadict Chang

Dennadict Chang

Deals Director, Business Restructuring Services, PwC Malaysia

Tel: +60 (12) 289 7004

Fiona Foong

Fiona Foong

Deals Director, Business Restructuring Services, PwC Malaysia

Tel: +60 (3) 2173 3750

Suren  Seelan

Suren Seelan

Deals Partner, Business Restructuring Services, PwC Malaysia

Tel: +60 (3) 2173 1373

Weng Fai Chan

Weng Fai Chan

Deals Director, Business Restructuring Services, PwC Malaysia

Tel: +6 (03) 2173 1827

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