Crisis Management

We will help you to preserve the value of your business

Whom and where we can help

Are you an owner or manager of a company...


... which produces low profitability and faces operational or strategic issues?

  • Are you considering how to make your operation more efficient or how to change the strategic direction of your company?
  • Do you wish to sell or wind down a part of your company in a controlled manner?

… which is unable to fulfil its obligations towards banks and other creditors?

  • Do you breach the terms of bank loans?
  • Are you unable to pay to your contractors in a timely manner?
  • Do you need to re-establish the trust between you and your creditors?
  • Do you need to counter hostile insolvency filings?
  • Do you need to acquire new funding or re-establish the conditions of the current funding?

... which you wish to recover proactively by means of insolvency?

  • Do you wish to perform restructuring of your company while preserving its value?

Are you an insolvency trustee at a company...


... which is elaborating a restructuring plan?

  • Do you need to monitor the debtor’s financial position and the fulfilment of the reorganisation terms?

... which has become bankrupt, and do you need to solve the situation quickly?

  • Do you need to find out which contracts must be fulfilled upon filing the bankruptcy petition and where the performance should be rejected?
  • Do you need to proceed with accelerated sale of assets or enterprise?
  • Do you wish to identify which actions of the debtor could be challengeable?

Are you a creditor of a company in crisis?


  • Do you wish to understand the debtor’s situation and to maximise your profit from the claim?

Would you like to purchase a company in crisis?


  • Do you need help with structuring and realising the transaction so that your investment is protected?
  • Do you need to find your bearings of the given company’s situation independently – from the internal (cash flow, financial and operating position...) as well as external perspective (insolvency trustees, creditors, processes...)?
  • Do you need to assess the potential of the given deal and to adopt measures to increase the value for you being the future owner?

Every stage of a company crisis is accompanied by specific warning signs and requires different approach

At each of the crisis stages, we are able to quickly identify problematic areas, to suggest tailored solutions aimed at preserving the company value and, subsequently, to implement such solutions successfully in cooperation with the management. We strive to offer specific solutions which help our clients in the real life. We create unique values which cannot be found elsewhere on the market. That is why PwC is the leading global provider of consulting services in the area of restructuring and insolvency.

Restructuring is not easy; in fact, the cases tend to be complex and highly time-demanding. However, the work is varied, as you never know which project and field you get to. From industrial holdings to cryptocurrency startups. What matters most to me, personally, is the fact that during my career I have helped dozens of companies to get back on their feet. And thousands of real people to protect their jobs.

Petr Smutný

PwC Leader of Crisis Management Services, ranked by Forbes among TOP 5 crisis managers in the Czech Republic

Our services in the area of Crisis Management

Independent Business Review

Where businesses are underperforming, in distress, or in crisis, we provide tailored business review services either for creditors or for the business itself.  We offer output in the form of an objective analysis that evaluates the fundamental viability of the company and serves as a platform for finding solutions among stakeholders (creditors, management, shareholders, etc.).

Key activities:

  • Reviewing the historical and forecasted performance of the business
  • Reviewing the current financial position and short-term liquidity forecast
  • Helping the company to identify and quantify reasons for its underperformance
  • Providing creditors with a transparent view of the company’s situation
  • Setting out potential options available to stakeholders
  • Determining prerequisites for the long-term viability of the business

Business Turnaround

We assist companies in designing and implementing a plan of restructuring measures in the strategic, operational and financial area. We proceed systematically to help clients stabilise the situation in the short term, thereby creating prerequisites for the preparation of medium- and long-term measures aimed at restoring the company's value. Subsequently, we help our clients to define and implement such measures.

Identification and implementation of strategic measures -> Leading the company in the right direction

  • Enhancing business strategy (expansion of sales channels, product lines, market coverage, etc.)
  • Enhancing business functions
  • Rationalising product portfolio
  • Marketing analysis
  • Optimisation of the corporate structure (e.g. merger/liquidation of subsidiaries), including optimisation from a tax perspective; divestment of non-operating assets in cooperation with our tax department
  • Resetting of internal processes (centralising sales and purchasing functions, etc.)

Identification and implementation of operational measures -> Profitability and liquidity improvement

  • Profitability analysis by product categories, services, sites, etc.
  • Sustainable costs reduction
  • Optimisation of operating capacity
  • Liquidity and working capital improvement
  • Implementation of a key performance indicators system

Designing a concept of financial restructuring as well as support during negotiations related thereto -> Capital structure stabilisation

Working Capital Optimisation

In times of liquidity crisis, we are ready to assist management to propose, manage and implement so-called “quick wins” in releasing funds tied to working capital. We have extensive experience in optimising and managing working capital across multiple industries.

  • Release of tied resources from individual components of working capital – “cash conversion cycle”
  • Preparation of a comparative analysis of the company’s working capital parameters vis-à-vis a group of similar companies and identification of opportunities for improvement ("benchmarking")
  • Identification of potential “quick wins” and longer-term working capital improvement opportunities
  • Implementation of long-term measures to improve liquidity

Financial Restructuring

Provided that the situation allows for an out-of-court solution in the form of financial restructuring, we assist companies in designing and implementing a restructuring plan.

We help the companies to design and realise restructuring of the balance sheet, to optimise the capital structure, to refinance its existing debt and to obtain new financing options (e.g. in the form of off-balance sheet financing).

Financial restructuring

  • Preparation and implementation of a restructuring strategy
  • Assistance in the preparation of a business plan and future outlook taking into account the proposed restructuring options
  • Proposal of adjustments of hedging instruments that correspond to the selected restructuring strategy

Stakeholder management

  • Stakeholder analysis, determination of negotiation tactics
  • Providing comprehensive management of tenders, communication with applicants for funding
  • Coordination of key stakeholders
  • Monitoring of management and cash flow development

Loan refinancing

  • Capital structure assessment
  • Covenant testing, security review
  • Change from bilateral to structured financing
  • Negotiation of better financing terms
  • Standstill negotiation

Assistance with fund raising

  • Support in securing financing, project management and communication with potential creditors
  • Selection of a financing provider through tenders
  • Assistance in identifying an optimal debt capacity
  • Assistance in modifying the capital structure
  • Support in setting the covenants

EFO – Estimated Financial Outcome

Negotiating a particular restructuring solution is often challenging, due to an informational asymmetry among individual stakeholders. Their assessment of a proposed out-of-court solution may be influenced by the inaccurate perception of their hedging instruments, which could be substantially different if put to the test of formal in-court (insolvency) proceedings.  An EFO thus serves as a benchmark to compare the terms of a proposed out-of-court restructuring solution with alternative hypothetical in-court scenarios.  The EFO process involves performing an indicative valuation of both the business and its assets, as well as determining the potential claims among which this value would be distributed.

EFO serves as a tool for determining the impact of insolvency on (i) the value of the business if sold as a going-concern or on a piecemeal basis; (ii) the dilution of the creditors’ balance sheet claims, creditor with priority claims, and other off-balance sheet items that would only crystallise in insolvency proceedings; and (iii) the ranking of entitlement to claim satisfaction under applicable jurisdictions.

  • Definition of hypothetical scenarios available
  • Preparation of an indicative valuation using cash flow models and based on asset valuation, including the preparation of the relevant scenarios concerning the value of the business
  • Estimation of potential claims that would crystallise under each scenario,
  • taking into account jurisdiction-specific issues related to claim types and priorities
  • Estimation of recovery for secured and unsecured creditors under each scenario

Insolvency Advisory

Taking into account all possible options available for a financial distress solution, a controlled insolvency process can be identified as the most appropriate under certain circumstances.  At other times, insolvency may be an unplanned and unexpected event.  In both cases the priority is to protect the value of the company and to maximise satisfaction, which requires extensive expertise and experience with insolvency proceedings.

Pre-insolvency process

  • Pre-packaged reorganisation and moratorium
  • Countering hostile insolvency filings
  • Estimated Financial Outcome

 Insolvency procedure

  • Liquidity management
  • Support in securing credit and off-balance sheet financing
  • Preparation of a restructuring strategy
  • Preparation and administration of property inventory as well as valuation of assets
  • Preparation of a reorganisation plan
  • Support in selling assets
  • Preparation and implementation of the sale process of a distressed company
  • Review of potentially contestable legal acts
  • Preparation of materials for the creditors’ committee or the creditors' meeting
  • Coordination of stakeholders (management, shareholders, creditors, insolvency trustee, other advisers)
  • Interim management

Post-insolvency process

  • Support of post-deal handover
  • Support during distribution of proceeds according to schedules
  • Support with post-deal integration

Optimised exit

If you become aware that your subsidiary business or autonomous business unit facility is underperforming, we are able to help you to recover its optimal value.  We will cooperate with you to identify the issues and to evaluate the options available and we will assist in implementing the selected approach. We can also help you to identify and manage the risks inherent in the process. The planned outcome will be an increase in shareholder value by selling, restructuring, closing, or winding down the underperforming business or subsidiary.

We aim to avoid the “fire-sale” scenario. The exit route we prefer is the “fix and sell” scenario where we combine our turnaround and disposal expertise to maximise the value of the transaction.  We may even consider expanding the business by merger or acquisition if this can add to the eventual resale value.

Controlled exit – we would gradually shut down operations over an agreed time frame, while finishing existing orders, selling assets and maximising the collection of receivables.  Sometimes, however, the best strategy may be to terminate the company’s activities as soon as possible.

  • Capital release to reinvest in the business
  • Help to re-deploy resources more productively elsewhere in the business
  • Maintaining brand reputation and avoiding adverse publicity
  • Application of our proven methodology to avoid delays and obstacles typical of divestment or disposal, thus reducing the costs and maximising recovery

Distressed M&A

To support owners facing an urgent need for cash or insolvency trustees charged with selling a debtor’s estate with the distressed sale of the entire business or selected assets by providing management of the sale process.

  • Assessment of distressed sale options
  • Assistance in preparation of a data room
  • Valuation of the business or assets
  • Identification and addressing potential investors
  • Preparation of teasers and information memoranda
  • Preparation of transactional documentation
  • Assistance with due-diligence and provision of information to potential investors
  • Coordination of stakeholders during the sale process
  • Support of post-deal handover
  • Support with post-deal integration

Distressed M&A

Distressed M&A has its particularities; the transactions must be structured accurately while being aware of what you want to buy and what the risks are, if any. All that needs to be performed very quickly. Our services in this area:

  • Assistance with transaction structuring
  • Assessment of whether it is best to buy the company or its part or assets
  • Risk identification and limitation options
  • Assistance in negotiation with the seller
  • Conducting of due diligence
  • Support of post-deal handover
  • Support of preparation and implementation of the restructuring plan

Non-Performing Loans (NPLs)

We advise banks and other financial institutions on the disposal of non-performing loans. Our services include conducting portfolio assessment, conducting of financial due diligence, preparation of information memoranda, asset valuations and disposal options. We identify potential investors, and facilitate sales negotiations and deal completion.  

NPL portfolio assessment

  • Portfolio evaluation, stratification and segmentation
  • Portfolio due-diligence and validation of assumptions
  • Development of an optimal portfolio sale strategy

 Market assessment

  • Assessment of the interest of strategic and financial investors (market testing)
  • Recommendation of further steps in the NPL portfolio value optimisation

 Debt sale

  • Implementation of the portfolio sale strategy
  • Preparation of teasers and information memoranda
  • Preparation of transactional documentation
  • Management of relationships with investors and support in negotiations
  • Investor selection and transaction closure

 Purchase of receivables

  • Purchase strategy of the portfolio
  • Portfolio due-diligence for potential investors
  • Support with transaction negotiations

Prevention of bad debts

  • Analysis and improvement of the collection process
  • Implementation of a key performance indicators system
  • Design and implementation of collection strategies

Why PwC?

Leader in the field of business recovery services in the Czech Republic

We have 25 years of experience in the area of restructuring and business performance management. Our specialists have broad experience from various situations and fields.

Successful cases

We have participated in cases constituting the restructuring milestones and we have been awarded by the European Turnaround Management Association.

Practical approach

Our team works directly in the company to ensure everyday contact with the management and other key workers.

Stakeholder relationship management

We manage the expectations of all stakeholders and have them involved in the project in a timely manner to ensure the smooth process of the restructuring or sale.

Independence and impartial advice.

We are independent and provide impartial advice. Our outputs are respected by the stakeholders.

We are hiring!

Would you like to work in the Business Recovery Services area? Check out our current job openings.

Job openings

Contacts

Petr Smutný

Petr Smutný

Partner, Crisis Management, PwC Czech Republic

Tel: +420 602 648 602

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