Restructuring an underperforming business
Our work with management and stakeholders of underperforming and financially distressed sports businesses can maximise their recoveries and protect their investment.
Business review and liquidity review
Deloitte can work with the financial stakeholders to conduct a review of the liquidity of a sports business to provide an understanding and analysis of the drivers of cash flow. This provides lenders with an independent view on whether its borrower has adequate liquidity to continue operating normally, thereby allowing time for the lenders to consider their options.
From the rigorous review of the borrower’s financial projections and a deep understanding of sports industry regulatory, insolvency and other specific matters, lenders can assess their options including future lending decisions.
Cash and working capital management
Deloitte helps clients to unlock cash, reduce funding requirements, improve cash flow visibility, assist in negotiations with key creditors, improve asset utilisation, and to smooth relationships between management, lenders and other stakeholders.
Our experience of sports business issues mean we can advise and assist management to achieve rapid improvements in cash and working capital management.
In situations of stressed refinancing, Deloitte has the expertise to:
- deliver a solid diagnosis, informed by our sports business expertise and experience, with an in-depth understanding of the company’s financing requirements, conducting a review of the business plan and evaluation of stakeholder positions
- provide a comprehensive options analysis with an appraisal of achievable alternatives and an exploration of alternative sources of funds; and
- lead robust negotiations to agree alternative solutions for the company with its creditors, their advisers and supporting lawyers and take these from the term sheet to full documentation