Strategic Advice on the Management of Financial Risks
Deloitte's treasury advisory team provides expert advice on the management of financial risks and other treasury challenges to listed and private companies.
The team works alongside Deloitte's financial advisory professionals, providing both standalone treasury advisory services and transaction-related treasury advice. The team consists of experienced corporate treasurers who combine sound technical skills with an in-depth understanding of the drivers of corporate value and treasury success factors.
Companies run large amounts of financial risks, ranging from foreign exchange and interest rate risk to liquidity risk. Treasurers are instrumental in identifying and managing these risks, and creating shareholder value by lowering treasury related costs. Effective treasury management such as cash management can release funds and be catalyst to support growth of a business.
As companies grow, financial risks evolve. Transformational changes such as M&A transactions can give rise to their own treasury risks that must be managed, but also result in the need to update existing treasury management policies and processes.
The team works directly with companies to advise on treasury matters, develop strategies for financial risk management, liquidity and cash management, and implement treasury operations and infrastructure.
They have worked for companies of all sizes on a wide range of deals and projects, covering most industries and a range of countries across Europe, the USA, India, China, Africa, the Middle East and Brazil.
Transaction-related treasury advice
Identifying and managing financial risks appropriately in a financial advisory transaction is often critical to a successful outcome.
The team can assist:
- Buyers, for example advising on target currency exposures, potential impact on valuation, and possible methods to protect against currency exposure during transactions, particularly between exchange and completion
- Post-Acquisition, either to establish or improve treasury operations, or to integrate two existing treasury teams
- Companies that are refinancing debt
- Businesses that are experiencing restructuring challenges, for example through improving cash management, and selecting and implementing appropriate interest rate hedges
The team also supports Capital Markets work, primarily in the context of the working capital statement and assessing group funding.
Examples of our work
Setting up a treasury function
The team designed and implemented a treasury management system for an international retailer, resulting in reduced borrowing, better risk control and hedging, and a reduction in banking transaction costs.
European cash management
For a global packaging business, the team developed, selected and implemented their European cash management solution (covering 15 countries and 30 banks). This freed up €30m of previously trapped cash.
The team advised the finance committee of a major airline company on its risk management strategies covering FX and fuel exposures and subsequently supported the treasury optimisation and streamlining for a period of 6 months.
FX risk management
Deloitte treasury advisory advised a PE owned oil and gas services company on FX risk management. This involved a detailed and in-depth analysis of the complex existing FX cash flows and processes to identify areas for improvement and make recommendations accordingly.
Deloitte Treasury in the market
Deloitte Treasury Advisory regularly contributes articles and thought-pieces to the Treasury profession. A recent article, published in the ACT magazine, the ‘Treasurer’, focused on liquidity and cash management in Middle East.