Business Restructuring
Business Restructuring
Besides being very demanding, today’s business environment changes rapidly. In these circumstances, many companies find themselves in a situation that calls into question the sustainability of their business. Identifying deteriorating financial results as soon as possible, identifying and understanding the real causes of such a situation, and designing and implementing measures to address such issues can be vital both in preventing the company’s value from declining and for sustaining its existence in general. In a restructuring situation, we may either take care of the entire procedure or we may offer our support only in some areas, including that of formal insolvency procedures stipulated by relevant legislation (Insolvency Act “ZFPPIPP” – preventive restructuring, compulsory settlements in various forms). As we can only be successful to the extent to which our clients are successful, our main guideline while performing our services is based upon creating impact and adding value to the client’s business.
We are capable of identifying and understanding the external and internal factors that are the cause of the client’s business problems. Furthermore, we command an in-depth knowledge of the methodologies required for a structured approach to formulating problem-solving measures. We combine those capabilities with a thorough understanding of insolvency legislation in order to be able to provide impactful quality advice regarding restructuring measures.
Independent Business Review
- Based upon a thorough analysis of the business, its market positioning and key external and internal factors affecting performance, we identify and expose the causes of difficulties.
- Based on the above findings, we assess the possibility of successfully implementing the company’s business plan and identify the main risks associated with the plan itself.
- If necessary, we identify alternative solutions.
- Cash flow or the company’s ability to generate cash flow (including cash flow forecast) is the ultimate focus of these activities.
We advise in various insolvency proceedings
(preventive restructuring, compulsory settlement, simplified compulsory settlement, creditors compulsory settlement etc.)
- We advise on the procedures that must be carried out in accordance with the law by the company’s governing bodies in the event of insolvency (Insolvency Act “ZFPPIPP”, Article 33 – Article 44).
- We prepare the documentation necessary for the submission of a proposal for the commencement of a compulsory settlement (Report on Financial Position and Financial Operations, Financial Restructuring Plan) and conduct activities for the preparation of the proposal.
- We prepare the Opinion of a Certified Business Appraiser, which is a mandatory annex to the proposal for initiating the compulsory settlement procedure (Opinion of a Certified Business appraiser in accordance with Article 146 of the Insolvency Act “ZFPPIPP”).
Planning of
Restructuring
- Support in preparation of a realistic, quality business plan.
- Preparation of detailed financial projections, broken down, if necessary, to an operational level.
- For the purpose of planning the restructuring, we build up a financial model which enables the analysis of various measures or different scenarios as well as quality and analytically-supported decision-making.
Negotiations with
creditors and other stakeholders
- Preparation of a financial restructuring plan presentation for creditors or other stakeholders and other related presentation documentation.
- We advise or participate in the presentation of the financial restructuring plan to creditors and other stakeholders, or in negotiations
Implementation
of individual measures.
- We advise on the implementation or lead the implementation of individual measures.
- Monitoring of the implementation of restructuring measures and reporting to the client or stakeholders in a pre-agreed form.
