Restructuring and recovery

Business trouble can arise quickly and for a variety of reasons. Companies may suffer from missed market expectations, reduced operating profit or severe cash problems. Whether triggered internally or by marketplace dynamics, early detection and swift, decisive action are the keys to restoring performance and value.

Liquidity constraints
  • Liquidity becomes constrained limiting a company's ability to operate efficiently
Liquidity and cash management
  • Development of short-term cash forecast
  • Aggressive cash management and cash preservation
  • Liquidity enhancement
  • Working capital assessment
  • Supplier and customer reviews
Covenant default
  • Imminent covenant defaults lead creditor groups to organize and renegotiate terms and conditions of credit agreements
Covenant relief and negotiations
  • Evaluation of pro forma debt capacity
  • Restructuring existing debt
  • Recapitalizing per new business plan
  • Raise new debt and equity financing
Overleverage
  • Overleverage and looming debt service payments trigger concern and trepidation from key creditor constituents
M&A/transactions
  • Assess non-core asset disposal and monetization strategies
  • Deal process and marketing coordination
  • Negotiation and execution of LOIs, term sheets, asset purchase agreements and POR
  • Deal financing
  • Post-merger integration
General economic weakness
  • General economic weakness can lead to a deterioration of profitability
Capital structure solutions
  • Evaluation of pro forma debt capacity
  • Restructuring existing debt
  • Recapitalizing per new business plan
  • Raise new debt and equity financing
Operational inefficiencies
  • Operational challenges and inefficiencies, combined with a lack of internal controls can lead to a deterioration in performance
Operational improvements
  • Efficiency improvement
  • Process streamlining
  • Cost reduction initiatives
  • Organizational effectiveness
  • Supply chain optimization
  • IT modernization
Business model challenges
  • Volatility in raw material and energy prices can cause unforeseen business model challenges and margin compression
  • Failure of a company’s business model to accurately forecast results can lead to credibility issues
Strategic alternatives & business planning
  • Strategic review of business
  • Corporate turnaround management
  • Development of long-term business plan
  • Execution of turnaround strategy