Solutions

Value Recovery Planning

Setting out a path to recover 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

Value Recovery Planning involves identifying recovery options and combining this with comprehensive scenario planning to quantify the effect on key metrics and, ultimately, shareholder value.

Step 1) Define and forecast recovery scenarios for your business

We capture the existing business plan forecasts and project a range of recovery scenarios, considering: the shape of the economic recovery, the wind down of Government support schemes and the impact on trading and working capital of subdued demand.

You can then define a range of plausible alternative futures and their impact on the key metrics and business plan.

Step 2) Explore available options

Working with management teams we identify and explore the range of potential recovery scenario options to establish the “size of the prize”.

These options are based on hypotheses and backed by data. They could include:

  • Working capital optimisation
  • Medium-to -long term cost out initiatives (and cost to achieve)
  • Refinancing and covenant resets
  • Growth initiatives
  • Non-core disposals
  • Partnering and acquisition opportunities

Step 3) Implementation

An event-driven 100-day plan is developed to implement the options chosen in Step 2, with clear objectives and accountability defined for each value recovery opportunity.

To ensure implementation remains on track, an implementation programme structure and associated governance framework is setup, with a regular reporting cadence to track progress, update forecasts accordingly and provide visibility to wider stakeholders.

And because transformations are likely to happen on multiple fronts of the business and at the same time, our Value Creation Management Office can oversee the delivery of your recovery and ensure your success is delivered.

Key contacts

David Peter Sharman

David Peter Sharman

Partner

Dave leads the Value Creation Services team in the UK. His focus is Value Creation Planning and Implementation for Private Equity acquisition targets, portfolio companies and corporates. He has over 2... More

Benjamin Granger

Benjamin Granger

Director

Benjamin is a Director in the Transaction Services team in the UK. He specialises in advising large corporates, private equity firms and portfolio companies on the planning and execution of complex cr... More

Alex Clarke

Alex Clarke

Assistant Director

Alex is an Assistant Director within our Business Modelling & Analytics team. He focusses on creating forecast financial models for corporate transactions and restructurings. He has an international f... More