Finance & Corporate Development

Restructuring and Turnaround

Restructuring and turnaround of organizations and processes aim to stabilise the finances and operations of a stressed or distressed company and put it back on the path to success. Many of these restructuring projects also include careful management of critical relationships during turbulent times with key stakeholders, such as creditors, shareholders and partners.

Dealing with financial distress is one of the most difficult and challenging situations that any company will face. Key operations break down, tensions in the company rise and relationships with stakeholders become fraught.

In these critical times the most essential objective is to establish a sense of calm and order by demonstrating that there is a clear plan for restoration in place.

A Consultport consultant who joins your crew can design and enact a plan to deliver restructuring actions that will stabilise short term liquidity, preserve shareholder and creditor value and control any future stability risks.

Once order is restored, your consultant can begin designing a path back toward long term financial stability and operational viability.

  • Liquidity Management: Often the most critical first phase of any restructuring and turnaround project is the early process of liquidity management to bring finances under control and reassure stakeholders. By understanding your company’s current cash management and cash flow forecasts a consultant can expand your liquidity capacity through appropriate sources, and then use that added flexibility to give you the best positioning for maintaining and restructuring operations.
  • Key Problem Identification and Solution: A consultant can get to the root cause of your company’s current financial difficulties, and design a plan for dealing with the underlying issues. It often takes a fresh pair of eyes to properly identify the core problems in a stressed or distressed company, and consultants have the knowledge and experience to solve these problems quickly and efficiently.
  • Capital Restructuring: Once short-term finances have been stabilised, the next phase often requires a more in-depth analysis of a company’s capital structure. There are a variety of methods for restructuring a company’s balance sheet, including capital raises, debt restructuring, lender negotiations and more. Knowing which methods to use to optimise your capital structure takes a dedicated professional with years of relevant experience in business operations and capital markets.
  • Stakeholder Management: The actions of a stressed or distressed company’s stakeholders will have a significant impact on the viability of any restructuring and turnaround effort. Experienced consultants know what your stakeholders need to hear to reassure them and minimise the impact on your long term investor relations. By establishing a clear and consistent dialogue with your stakeholders, a consultant can deliver the information that they need to make rational and objective decisions under difficult circumstances.
  • Redesign Operations and Transition: Once your company’s operations have been stabilised and key problems addressed, it is time to reexamine your existing business plan and operating model, and redesign them with an eye to long term success and the avoidance of future critical problems. Your company will also need a detailed transition plan that will take them from their current stabilised state toward the more robust state of future operations.
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