No one can refute the fact that today’s economic situations are highly unexpected and business environment is brutally competitive. Running your company smoothly for years and then abruptly finding it in unfamiliar terrains of high cost pressure, financially distressed situation and tight cash-flow which makes it difficult to efficiently operate the company, reinvest in new equipment, further growth, maintaining high capex assets, raising new capital or even financing debt.
Identifying the signals of distressed situation and recognizing the need for turnaround and transformation initiative is an important prowess. Turnaround management does not only apply to distressed companies, it in fact can help in any situation where direction, strategy or a general change of the ways of working needs to be implemented. High growth situations, for example, is one typical scenario where turnaround experts also help.
Capital restructuring not only requires creative modification in the financial aspect of the company, it also takes legal, regulatory, tax, ethical, social, and behavioral considerations into account. Without having an experienced capital restructuring adviser on board, capital restructuring can be real painful and complex process whereas having one ensures the achievement of company’s financial goals.
Our turnaround strategy primarily focuses on stabilizing cash-flow, restructuring outstanding debt obligations, reduce operating costs, reduce all non-essential costs, improve working capital management, improve product/price and product/market mix, streamline product lines and accelerate the growth of high potential products & services.
Our restructuring group has extensive experience helping clients choose the capital structure that maximizes shareholder value and may involve changing the amount of leverage a firm has without changing the firm’s assets i.e. either increasing leverage by issuing debt and repurchasing outstanding shares or decreasing leverage by issuing new shares and retiring outstanding debt by paying off the bondholders.
Contact us to learn more about our restructuring, turnaround & transformation services.