Business cycles, economic cycles and industries as a whole fluctuate over time. Different circumstances can send industries into downturns and any entity can become susceptible to financial distress. It’s critical to identify potential signs of distress as early as possible in order to develop an appropriate response. Doing so helps management and the board respond to these cycles, oftentimes refocusing strategy to give the entity a better chance at stabilizing operations and preserving value.
If initial turnaround actions such as revenue enhancements, cost reductions or liquidity improvements don’t right the ship, the board may need to consider additional alternatives. Such solutions may include an out-of-court restructuring, in-court reorganization through a Chapter 11 bankruptcy, divestiture of part or all of an entity’s assets or business, or liquidating the company through a Chapter 7 filing. Each of these alternatives presents a unique set of challenges for an entity to navigate.
To meet these challenges, our turnaround financial advisory team works seamlessly with all stakeholders and other principals to plan and execute all stages of the proposed restructuring or reorganization process. Through years of practical experience, our PwC professionals are disciplined in the practice of assessing strategic turnaround and restructuring alternatives, helping entities evaluate their level of distress, design an appropriate plan, and execute the right strategy. PwC's multi-disciplined offerings allow us to deliver end-to-end solutions that preserve value and reduce risk throughout the entire restructuring continuum.
Engage with key stakeholders to restore confidence and allow time to stabilize the business. We create a platform for recovery and build sustainable restructuring solutions.
Liquidity and cash management
Work with companies to improve their liquidity management through process improvement while identifying and implementing "quick wins" to provide time to enact business turnarounds.
Bankruptcy reporting and administration
Support companies with bankruptcy reporting requirements, such as court reports and filings, SEC Forms and lender reports, during bankruptcy.
Strategic alternatives and business planning
Conduct strategic reviews of underperforming businesses and provide a clear evaluation of the available strategic options.
Identify operational drivers of inefficiency and develop programs to drive profitability.
Debt capital advisory
Help companies with all aspects of their debt capital structure by providing independent advice on restructuring, collateral assessments and refinancing alternatives.
Advise financial stakeholders (banks, bondholders, asset management firms, and Unsecured Creditor Committees) on restructuring options, designed to maximize recoveries.
Distressed M&A and transaction advisory
Advise buyers and sellers to maximize value and structure transactions, whether through plan sponsorship or under a Chapter 11 §363 sale.
Wind down and liquidation services
Support companies with wind down operations as a result of a Chapter 11 wind down or a Chapter 7 dissolution.
A restructuring can be complex and it may involve a number of specialized topics. Our Deals professionals team works together to provide a comprehensive solution to your business challenges that view issues through multiple lenses.
US Business Recovery Services Leader, Principal, PwC US