Value Creation Finance Services

From underperforming towards stressed/distressed or even crisis and/or insolvency situations a pragmatic approach and strategic, operational and financial insights are needed to come to a solution. We have assisted companies amongst multiple industries with strong expertise in retail, construction, healthcare and industrials. We work for corporate clients, financial institutions, shareholders, supervisory boards and other stakeholders by creating insights and implement improvement and/or turnaround plans.

Your challenge

Do you recognise one of the following situations?

• Stagnant growth
• Falling margins
• Increasing creditor positions / pressure
• Backlog of investments
• Shrinking market or other adverse market development

Deloitte assists companies and their management in times of declining performance, financial stress and transformation.

Our solution

1. Turnaround & Restructuring

Facing stressed situations require insight in cashflow determining the pace at which the restructuring and associated initiatives must take place in the field of strategy, operations and finances. It is crucial to distinguish between causes and symptoms and answer the question: why? Having identified the causes, an action plan is drawn up and our team can leverage our extensive turnaround experience and implementation skills. We support management in communicating with banks, shareholders and other stakeholders in order to achieve the best results.

Depending in the situation and specific needs, we can support individual aspects of the process:

• Short term liquidity planning (13-week cash flow projection to determine the liquidity requirement during this period)
• Independent Business Review (independent analysis of the current situation and strategic future)
• Turnaround & restructuring strategy and implementation (roadmap determination and implementation of these steps to come to the desired outcome)
  • Crisis Management & contingency planning 
  • WHOA support (preparation and execution of procedures under the “Wet Homologatie Onderhands Akkoord”)
  • Wind-down and liquidations (focus on core activities fitting the renewed strategy by accelerated M&A support)

2. Business plan transformation

A structural loss making situation requires business plan adjustments, ultimately to come to a viable and feasible business plan. Our team can assist you by applying a strategic, operational and financial lens and come to an adjusted business plan and implement it in order to turnaround the business.

3. Cash flow management & working capital optimization

As inflation persists, companies that are less agile may appear profitable, whilesimultaneously experiencing losses in purchasing power and credit worthiness.

This occurs when collections are not timely, when bad debt increases due to rapiddeterioration of creditworthiness, and material and wage costs are not passed along to customers timely. Being agile and reacting quickly to changes like these allowsenterprises to maximize the purchasing power of their cash flows in inflationary times. Upmost important is to create valuable insights in cash flow in order to manage liquidity and optimize working capital.

4. Corporate simplification and Managed exit

Simplifying an entity’s structure delivers value across the business. If the legal entity structure is more fit-for-purpose it can unlock synergies from the business, drive SG&A savings and more. We help our clients with various challenges like Accounting, Tax, Finance & Treasury, Legal & Regulatory, HR, IT and Operations in order to realize cost savings through rationalization of legal entities.

Many clients have to deal with non-core or underperforming business operations which have become a drag on group earnings. We support the management team to assess the primary options available being to fix and retain, sell or close-down operations. Our focus is on understanding our client’s key drivers and helping delivering value.

5. Performance improvement and exit readiness

Aim to assist clients in improving performance and preparing investments for exit by addressing all factors that matter across the investment's life cycle, impacting both the P&L and the Balance Sheet. We support PE and portfolio management throughout the whole investment life cycle in taking a three lensed approach, strategy, operations and finance setting up and driving initiatives to improve performance from Entry/Early Ownership, via Growth to Exit. Depending in the situation and specific needs, we can support individual aspects of these phases:

• 100-Day plan including quick win list and fully scoped business plans for value driving projects
• Taking control by implementing best in class management & financial reporting with KPI dashboards
• Cost & capital optimisation and efficiency improvement analyses and initiatives
• Performance monitoring/tracking dashboard
• Exit Lab for early exit preparation with exit value roadmap
• Divestments options and strategy report
• Red flag report and improvement planning