The causes of companies’ financial distress can be both internal and external: changes in the market and competition, poor market positioning, or deficiencies in operational or strategic planning.

When circumstances require a withdrawal from a particular country, industry, market or company, PricewaterhouseCoopers can help business stakeholders increase value. We do this using our experience with corporate finance, restructuring, insolvency and taxation.

If this is your situation

• Your company generates financial losses or negative cash flows
• Your company requires business analysis and valuation
• You need a quick selling of shares and assets of your company
• Financial or organizational systems of your company require restructuring

No matter what the cause, we are ready to help your company’s shareholders and management tackle financial distress.

Analysing the situation and its causes

We review key balance sheet items and the company’s overall financial performance, focusing on losses and financial difficulties. If required, we can assist with reviewing strengths and weaknesses in the company’s strategy. We can also conduct a review of major markets and competitors to assess the company’s competitive advantages.

Assisting with preparing financial projections

To perform a valuation of the company and prepare information for potential investors, we help formulate financial projections and estimate the indicative value of the business. As part of this, we perform a sensitivity analysis of financial projections, comparing them with any changes in parameters. Advising shareholders on a potential business restructuring To increase the company’s attractiveness to potential investors, we consider a number of options and advise on financial restructuring and reorganisation. In many cases, we also help the company take steps to improve operational efficiency. Developing the target company’s profile We assist the company’s management in preparing a brief overview (a teaser) of the company’s business as well as other sales documents, including an information memorandum.

Drawing up a list of potential buyers

In addition to preparing information on the target company, we also put together a list of industry (strategic) and financial (portfolio) investors who may be interested in acquiring it.

Managing the sale process

We provide potential buyers with all the information about the company. We also prepare and manage the company’s due diligence, dealing with potential investors throughout. Additionally, we help with negotiations and, at a later stage, structure and close the purchase and sale transaction.