Helping to resolve challenging refinancing and restructuring
Deloitte's team is dedicated to advising companies and not their lenders to ensure clients get impartial and unconflicted advice. They have advised on many of the most high profile financial restructuring in the UK market and have developed a reputation for developing and then robustly negotiating workable solutions.
Navigating through turbulent times
Most shareholders, board members and management teams only experience financial distress once in their career. The situation can be confusing as stakeholders' priorities change when confronted with the triggers of covenant breaches, maturity deadlines or liquidity crunches. There is however, an optimal way to navigate the situation and give the company the best chance of survival with a restructured balance sheet.
Whether the optimum outcome is a refinancing, a covenant reset, an “amend and extend”, a financial restructuring or a sale of all or parts of the business stakeholders need financial, strategic and operational insights to make fully informed decisions. This requires a realistic view of the company’s position and prospects, through the development of a robust business plan.
Based on that plan, early identification, evaluation and prioritization of the options available to the company and its stakeholders is critical to achieving a successful outcome. The team work closely with Deloitte's debt advisory team who are able to assess new money options. Having chosen the solution the Company must receive robust and focused support in the negotiation of the solution and then on the planning of the implementation of the solution.
It’s the board’s responsibility to make sure the company is driving the process. As an adviser Deloitte has gained a reputation for developing excellent solutions, providing real hands on advice and providing addition value add through specialist services such as its ability to analyse stakeholders positions, it's tax structuring and pensions and other liability management expertise.
Ten lessons from ten years
In 2003 Deloitte established a team specifically to advise companies in financial difficulty across operational turnaround and financial restructuring.
Since that date the team has grown to over 20 dedicated senior professionals and has advised the Company in many of the UK's most high profile restructurings. It has expanded its services and it has grown its geographic footprint by linking into and developing within Deloitte a global network of similar advisers.
To celebrate their ten year anniversary the team developed their 'Ten lessons from ten years' document as a light hearted look back at many of the painful lessons learned.