Value Creation Services

The single-minded focus of Deloitte’s Value Creation Services team is to improve cash and enhance profits for our clients.

With a suite of proven and unrivalled techniques across Cash, Working Capital and Performance Improvement, we quickly identify, plan and implement a range of tailored initiatives to deliver tangible benefits across the entire value chain.

So whether you’re considering an acquisition or divestment, or you need turnaround support, contact us today to see how we can help. We have an enviable track record of driving growth and helping organisations get back on track.

Operational Turnaround

Helping you to act early and quickly to ensure value preservation and delivery

In challenging times it is important to recognise when your business is facing headwinds – the causes of underperformance can manifest themselves both as internal factors (such as liquidity concerns, loss of key management, stagnating profit margins or a growth strategy not going to plan) or external factors out of your control (for example, currency movements, competitor innovation or trade barriers).

Acting early and quickly ensures value preservation and value delivery.

How we can help

We are seasoned practitioners who work shoulder to shoulder with you to drive rapid and sustainable profit and cash acceleration in challenging situations – we deliver what you need at pace and have a proven track record supported by deep sector insight.

Our 4x core offerings are:

• Turnaround – rebuilding performance rapidly
• Cash and working capital management – driving cash sustainably at speed
• CRA / CXO – providing practical leadership from experienced hands on advisors
• Stakeholder management – rebuilding relationships and lending credibility

Working Capital

Helping you to maintain an optimal level of Working Capital, the lifeblood of any business

Working Capital is often described as the ‘Lifeblood of a Business’ as it represents the operational liquidity of a company. The cells comprising this lifeblood is cash that flows in and out of the business as circulating short-term investments. Cash flows out to fund operational expenses that generate current assets and then cash flows back in as these current assets are converted back into cash. This cycle continues embodying the core operations of a business.

Maintaining an optimal level of Working Capital can be a challenge for even the most profitable businesses. If Working Capital is not running efficiently, the flow of cash can significantly affect the liquidity of a business. Cash can be tied up in a multitude of ways including slow moving stock, early payments to suppliers, and slow collections from customers. This is akin to a blockage in the arteries of a business preventing cash from circulating through its cycle in a timely manner.

How we can help

• Identify opportunities to improve cash flow through working capital levers
• Order to cashProcure to payForecast to fulfil
• Make working capital more efficient through sustainable process changes
• Operationally implement opportunities to improve cash and working capital
• Use data analytics to create working capital dashboards using transactional data

Operational Improvement

Delivering rapid operational improvement, from streamlined operations, reduced costs or increased sales

Whatever the commercial context, it is rare to encounter an organisation that could not benefit from streamlined operations, reduced costs or increased sales. Deloitte’s Performance Improvement team – all change management and implementation specialists – has a singular focus: to deliver rapid operational improvement from improving cash flow and EBITDA margins for clients in any industry.

Deploying skills ranging from pricing strategy optimisation and SG&A cost rationalisation through to organisational and process review and redesign, we target the improvements that will have the biggest impact on your bottom line in the shortest period of time.

How we can help

Our pragmatic, results-driven team applies a financial-investor lens to performance improvement. We have deep situational and sector experience, and take a hands-on and collaborative approach to achieving sustainable results.

• Diagnostics – comparator insight using proprietary benchmarking databases built from our own extensive experience
• EBITDA improvement – cost-reduction and revenue-growth strategies
• Operating Model optimisation – organisational review and redesign
• 100-day plans – design, validation, implementation: partnering businesses and investors to deliver value for all stakeholders
• Zero-based budgeting – performing the role of ’challenging friend’ throughout budget process, to ensure all costs are justified

Value Recovery Planning

Identifying recovery options and combining this with comprehensive scenario planning to quantify the effect on key metrics and, ultimately, shareholder value.

When businesses need to rebuild margins, improve cash generation or strengthen their balance sheets, we help identify value creation opportunities fast, and support the delivery of rapid cash and EBITDA benefits.

COVID-19 has had significant impact on businesses and pickup in activity for many is currently unclear. Almost two-thirds of CFOs do not expect demand for their own businesses to reach pre-pandemic levels until after Q2 2021 and over 70 per cent believe corporate Operating Margins will decrease over the next 12 months (Deloitte CFO Survey, Q3 2020).

Given this, there is an immediate need to set out a practical and flexible plan to improve cash generation and profitability.

How we can help

• Step 1) Define and forecast recovery scenarios for your business
• Step 2) Explore available options
• Step 3) Implementation

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