Restructuring and Crisis Management
Crisis situations frequently create new challenges and establish new priorities for management. And it’s not only approaches that change. Business executives often need to deal with new contact persons at financing partners and confront the fact that established relationships with decision-makers are no longer relevant. To succeed at ‘restructuring’, in a game with different players, businesses usually require support to learn and master the new rules.
Securing liquidity in difficult circumstances
In a crisis, liquidity is the first priority. Access to new capital or the extension of credit lines become much more difficult. Participants usually need to reach consensus on the likely business performance, past on its track record, before progressing appropriate and concrete (financing) solutions for the company.
To guarantee liquidity in the crisis, the financing partners expect a concept that requires contributions from all stakeholders. We have experience in developing how to release capital from tangible fixed assets, receivables and inventories, which helps to resolve the liquidity situation of the business or, at least, to reduce the financing needs from banks.
Selling subsidiaries or business units is a further way of improving the financial opportunities of a company.
The profitability of a company must also be improved in a sustainable way, so that all stakeholders can see why support for the company during the crisis makes sense, and how existing and new funds can be recovered. Measures to increase profitability and a realistic plan for implementation need to be developed and coordinated with various interest groups.
We help shape requirements for ongoing reporting to financing partners or owners by building on our experience and through direct contact with the financing partners, helping win back lost confidence.
Turning crisis into opportunity
When companies face a crisis and pressure from stakeholders increases, management faces greater challenges. You need to motivate key employees, safeguard suppliers, develop measures, and properly assess barriers to implementation. A restructuring plan is required, mid-term planning needs to be kept up-to-date, and negotiations must be held with financing partners.
Whether you lose a major contract, important employees depart, or a client becomes insolvent: PwC’s experts understand these difficult situations. We’re here for you – to provide our experience or supply additional qualified staff. We help you to better understand your current position step-by-step, to assess your options, and to develop tailored solutions.
With our international network of advisory professionals, we can also provide support on country-specific issues. Depending on the size and focus of your case, we will put together an interdisciplinary team and involve industry experts, strategy advisors, M&A advisors or other experts as required.
