Helping stakeholders rapidly implement optimal restructuring solutions
The most successful restructures and turnarounds all have one thing in common – meticulous planning. Without this, companies are flying blind and often leave themselves vulnerable to the inevitable shocks that come with distressed situations.
A good restructuring plan covers areas such as cash flow, options, risks, opportunities, and stakeholder communication plans. It also provides appropriate guardrails to keep the plan’s execution on track and ensure an organisation can emerge from distress as quickly as possible, with its reputation and relationships intact.
Our New Zealand team is part of a global network of approximately 1,750 restructuring professionals, as well as sector and technical specialists. We typically work with the management and/or owners of distressed businesses who are responsible for underperforming divisions and business units and are seeking radical changes to improve performance.
We can provide restructuring services that include, but are not limited to:
- completing independent business diagnostics reviews for lenders, focused on existing (and new) customer viability, strategic direction and/or operational improvement
- conducting credit assessments on both individual exposures and customer/industry portfolios
- assessing options, often involving Deloitte’s wider advisory teams to assess the full suite of options, including detailed fallback planning
- developing performance improvement plans to increase profitability
- completing working capital assessments, with a view to improving both short and long term cash flows and working capital management within the customers’ business
- providing workout solutions, including both formal and informal appointments. Often the solutions will involve restructuring and/or some form of sale, and in the case of the latter, we work closely with colleagues in our Accelerated M&A team
- formulating milestones to facilitate the turnaround of an organisation and ongoing monitoring to ensure all parties are held accountable.
If a consensual route is not possible, our team’s specialist knowledge of insolvency legislation covers all the options for undertaking a formal insolvency process. Options might include administrations, receiverships, liquidations, & creditor’s compromises. These options can be viewed in more detail here.
In addition to working with organisations, management teams and owners, and as the economy undergoes ongoing reform, financers and government agencies must act decisively to ensure stakeholder value is protected. Deloitte’s Turnaround & Restructuring team works with financiers and government bodies to drive financial sustainability so that providers can rapidly deliver better services and achieve greater community outcomes.
How we can help
Where government is a service provider, our team can:
- review base funding and operating models
- assess strategic financial sustainability and optimise public service costs
- perform due diligence on government funding initiatives and programs
- provide strategic project governance
- support policy execution.
Where government is a buyer, we can:
- assess financial and funding viability
- review commercial principles
- provide ongoing monitoring
- conduct investigative accounting
- help with government procurement and divestment.
Where government is a lender, our team can:
- help with programme application design
- conduct credit assessments
- provide debt advisory and structuring advice
- review covenants and term sheets
- help with portfolio management.