Business Restructuring Services
Harsh economic climate embedding rapid market changes, new business models, and disruptive technologies may plunge companies into serious financial distress. Deliberately disregarding these elements could negatively impact the corporate survival, leading to a host of problems including underperformance, declining earnings, funding issues and cash-flow blockage to name a few.
Analysis of the industrial dimension of the business is a key entry point for early detection of exhibits signs of distress. As a result, taking swift strategic actions is crucial to restore performance and value.
Status quo is not an option. That’s why, companies often struggle to organise, plan and address the related business & operational challenges. In this context, PwC with its significant experience in assisting companies combined with international skills and worldwide best practices, is able to accomplish restructuring projects in the most efficient way.
The challenges
Companies seek an efficient way to overcome the numerous challenges such as:
- Anticipate and manage industrial change
- Local and international differentiation
- Improve operational performance and optimise investments
- Face increase of fixed cost
- Increase the level of cash flow
- Maintain and optimise financial resources
- Regain the confidence of financial partners
The restructuring cycle
We deliver a set of customised services at every stage of the restructuring life cycle.
The PwC services
- Independent Business Review
- Industrial approach review: value chain analysis, purchase process review, production process review, logistic implantation review, etc.
- Commercial approach review: mix of product-market, client portfolio analysis, sales process, after-sales services, sales workforce competences, key performance indicators, etc.
- Financial approach review: allocation of fixed and variable costs, sensitivity analysis, capital expenditure needs, working capital (focus on reduction of inventory), financial debt, gearing, capital structure, etc.
- Strategic, industrial and operational restructuring
- Corporate strategy review (e.g. mission, objective, strategic fit of business units, governance principles, make or buy strategy)
- Industrial analysis(e.g. industrial processes, quality of tangible assets, transportation costs, product routing, raw material selection, location of production facility)
- Analysis of business processes
- Review the allocation of resources and capabilities throughout the organisation
- Identification of "quick wins" in working capital improvement
- Development of restructuring plans
- Assistance with external stakeholder negotiations
- A rich mix of in depth functional and industry expertise that can be brought together to support management in their development of initiatives
- Etc.
- Financial restructuring
- Analysis of strategic options
- Review of cash flow forecast
- Implementation of cash conservation guidelines and controls
- Development / review of cost reduction initiatives
- Inter-creditor negotiation
- Balance-sheet restructuring, leaner corporate structure
- Review and assessment of assets and liabilities
- Maximisation of value through sale of shares or assets
- Identification of alternative funding
- Business planning
- Etc.
