This involves the assessment of strategic options, analysis of stakeholder interests in alternative scenarios, the development of a restructuring plan and facilitation of the negotiation. It can involve matters such as:
- Converting existing debts to equity;
- Converting preference shares to ordinary shares;
- Debt subordination;
- Debt compromise;
- The sale or transfer of existing debts or equity to more supportive new owners; and
- Accelerated sale of a part of the business.
For such a process to be workable, all interested parties must believe that financial restructuring will put them in a better position than if the company were to be put into immediate liquidation or a Formal Restructuring. The steps towards achieving a successful financial restructuring are to:
- Analyse your business and its prospects;
- Review the restructuring options;
- Assess the likely recovery of moneys owed to each class of stakeholder in the event of liquidation;
- Develop a restructuring plan;
- Develop a negotiation strategy that will ensure each stakeholder group agrees to a restructuring; and
- Identify new cash flow requirements and raising the required money.
We can act as financial advisers to you throughout this process. We manage the process whilst also providing you with whatever day-to-day support you may require. In more complex circumstances or where management resources are already overstretched, we may temporarily appoint a Chief Restructuring Officer who can focus solely on restructuring and turnaround, leaving you and your management team to focus on running the business.
If you’ve read enough and want to get started on the restructuring of your company; contact us now using one of the methods on the right of this page. Or if you think the above solutions are not right for you then why not review our other solutions.